European markets await euro zone inflation data

Goldman Sachs’ Global Head of Commodities Research Jeff Currie told CNBC that historically, oil stocks have traded at a much higher premium to crude oil prices compared to current price levels.

For instance, the price gap between SPDR Oil & Gas ETF and ICE Brent Crude futures contract was about $66.60 on Tuesday. That’s significantly lower than the $104 gap recorded at the start of January 2017, according to Koyfin data, as the chart below shows.

Wall Street pros are worried about the outlook for stocks, and are urging investors to stay defensive. These stocks with margin growth could be safe bets.

Pro subscribers can read more here.

— Zavier Ong

European markets are heading for a higher open on Wednesday as regional markets await the latest inflation data from the euro zone in November.

The U.K.’s FTSE index is expected to open 23 points higher at 7,536, Germany’s DAX up 68 points at 14,414, France’s CAC up 29 points at 6,697 and Italy’s FTSE MIB up 119 points at 24,597, according to data from IG.

Data releases include preliminary inflation figures for the single currency area, France’s and Italy’s final third quarter gross domestic product readings and Ireland’s unemployment rate for November.

— Holly Ellyatt