BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open on a positive
note Wednesday, with trading later in the day likely to be influenced by the
release of key U.S. CPI data along with other reports on U.S. retail sales and
homebuilder confidence.

Economists expect U.S. consumer prices to climb by 0.4 percent in April,
matching the increase seen in March.

The annual rate of consumer price growth is expected to dip to 3.4 percent in
April from 3.4 percent in March, while the annual rate of core consumer price
growth is expected to slow to 3.6 percent from 3.8 percent.

Closer home, French April final CPI figures, Eurozone industrial output figures
for March and Eurozone Q1 GDP second estimate may garner investor attention.

Asian markets traded mixed this morning as the trade conflict between the United
States and China escalated.

China vowed to take measures to defend its interests after U.S. President Joe
Biden imposed heavy tariffs on Chinese products including batteries, EVs, steel,
solar cells, and aluminum ahead of elections.

In another development, China's central bank left a key policy rate unchanged
when rolling over maturing medium-term lending facility (MLF) loans.

The dollar and bond yields dipped following downward revisions to March's U.S.
producer price inflation data.

Gold was marginally lower while oil prices climbed after an industry report
pointed to shrinking U.S. stockpiles.

U.S. stocks fluctuated before finishing higher overnight as Treasury yields
moved to the downside after initially moving higher in response to data showing
an unexpected increase in producer prices.

Data showed the producer price index for final demand rose 0.5 percent in April
from a month earlier after a downwardly revised 0.1 percent drop in March.

The annual rate of producer price growth accelerated to 2.2 percent as expected
after climbing 1.8 percent in March.

Federal Reserve Chair Jerome Powell described the producer price index report as
more mixed than hot, adding he doesn't expect the next move to be a rate hike.

Powell cited 'lack of progress' on price pressures and said the central bank
needs to 'be patient and let restrictive policy do its work.'

The tech-heavy Nasdaq Composite jumped 0.8 percent to a new record closing high
while the Dow inched up 0.3 percent and the S&P 500 added half a percent.

European stocks closed at a record high on Tuesday as investors pondered the
outlook for rates.

The pan European STOXX 600 rose 0.2 percent. The German DAX slipped 0.1 percent
while France's CAC 40 and the U.K.'s FTSE 100 both edged up 0.2 percent.



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