European Shares Seen Opening On Steady Note

(RTTNews) - European stocks may open higher on Wednesday as worries about SVB contagion and inflation eased.

The upside, if any, may remain limited as concerns persist about U.S. banks' credit ratings and the borrowing costs for the sector.

Moody's Investors Service cut its view on the entire U.S. banking system to negative from stable, reflecting the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank, Silvergate Bank and Signature Bank.

Asian markets were broadly higher as China's central bank added liquidity to the banking system via operations of medium-term lending facility.

Additionally, a slew of data released today confirmed the recovery in China was well on track.

Chinese retail sales rebounded in the first two months of 2023 and fixed investment grew at a much faster-than-expected clip, while factory activity expanded slightly slower than expected and the jobless rate increased, according to data by the National Bureau of Statistics.

German wholesale price data, French final CPI figures for February and Eurozone industrial production numbers for January are due later in the day.

U.K. Chancellor Jeremy Hunt will announce his spring budget later today.

The dollar was little changed, and gold held above $1,900 per ounce while oil prices jumped around 1.5 percent, after having fallen to a three-month low in the previous session amid the U.S. banking turmoil.

The Organization of the Petroleum Exporting Countries (OPEC) on Tuesday raised its forecast for Chinese oil demand growth in 2023 but left the global demand total steady, citing potential downside risks for world growth.

U.S. stocks rallied overnight, with banks leading the surge after regulators assured that there won't be a relapse of the financial crisis from 15 years ago.

Data showed inflation eased slightly last month, helping offset recent concerns about the outlook for interest rates ahead of next week's FOMC meeting.

The Dow gained 1.1 percent to snap a five-day losing streak, while the S&P 500 climbed 1.7 percent and the tech-heavy Nasdaq Composite jumped 2.1 percent.

European stocks also closed on a buoyant note Tuesday as concerns about wider contagion in the financial system eased.

The pan European STOXX 600 rallied 1.5 percent. The German DAX surged 1.8 percent, France's CAC 40 index surged 1.8 percent and the U.K.'s FTSE 100 added 1.2 percent.