Stocks set to open lower, US debt ceiling returns to center stage. The Eurostoxx 50 opens at 4,401.49 points (+0.35%), the CAC 40 at 7,152.60 points (+0.34%), the DAX 40 at 16,247.86 points (+0.61%) ), the FTSE 100 at 7,326.97 points (-0.34%), the SMI at 12,557.34 points (+0.32%), the AEX at 826.50 points (+0.40%), the BEL 20 at 4,301.09 points (-0.56%), IBEX 35 at 9,040.20 points (-0.61%), DJIA at 36,142.22 points (+0.15%), Nasdaq at 15,973.86 points (+0.76%), the S&P 500 at 4,700.90 points (+0.39%) and the Nikkei 225 at 29,688.33 points (-0.40%).

On the exchange side, the change from the close in New York indicates that EUR/USD opens at 1.1300 (-0.19%), EUR/JPY at 129.84 (- 0.13%), USD/JPY at 114.91 (+0.07%).

European equity markets are expected lower on Wednesday at the open as investors catch their breath after new highs hit on Tuesday. Market sentiment also darkened after US Treasury Secretary Janet Yellen warned that the US debt ceiling could be reached in mid-December. At 7:35 am, the futures contract on the CAC 40 lost 0.3 points, according to data from the broker IG Markets, while that on the DAX 40 lost 30 points, or 0.2%. The contract on the FTSE 100 also dropped 30 points, or 0.4%.

The central banker continues to believe that the high inflation observed recently in the United States will subside as the economy returns to normal functioning. Long-term inflation expectations also show that households expect price increases to slow down, she pointed out. Acting quickly on the monetary level to curb inflation would have "a cost" for the economy, she said, if price pressures were to ease. The markets have been preparing for this announcement for several days, wondering about Jerome Powell's chances of being reappointed for four years at the head of the institution. Fed Governor Lael Brainard also met with Joe Biden in view of a possible nomination as head of the central bank.

Wall Street ended higher on Tuesday, supported by better than expected indicators in the United States on the front of consumption and industrial production. The Dow Jones Index (DJIA) closed up 0.2% to 36,144.13 points, and the broader S&P 500 index rose 0.4% to 4,701.16 points. The Nasdaq Composite gained 0.8% to 15,973.86 points. In Asia, the main indices are moving in scattered order. In Tokyo, the Nikkei index lost 0.4%, while the Hang Seng of the Hong Kong Stock Exchange dropped 0.5% at the end of the session. The Shanghai Composite index gained 0.4% at the same time. Investors will be attentive on Wednesday to the final inflation figures for October in the euro zone. In the United States, they will be watching housing starts and building permits for the past month.

Yields on long-term U.S. Treasuries stabilize early on Wednesday after hitting their highest level in three weeks the day before, on the back of higher U.S. retail sales in October and advocacy from the Fed Chairman of Saint-Louis for a tightening of American monetary policy in order to curb inflation. At 7:35 a.m., the yield on the ten-year bond, the benchmark, of the market, stood at 1.636% against 1.640% on Tuesday evening.

The euro retreated on Wednesday against the dollar, which still benefits from strong demand. However, IG points out that forex traders face mixed signals in the US: retail sales confirm that the still strong US economy can withstand an early interest rate hike, the positive effects of the Investment in infrastructure appears to be priced in and rising Covid-19 case numbers may reduce risk appetite.

Oil futures are trading lower on Wednesday morning, but Commerzbank believes prices should be supported in the near term by a still tight market. In addition, Russia, Saudi Arabia and the United Arab Emirates have indicated that OPEC+, which brings together members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, will cautiously increase its oil production, resisting as well as calls from the United States to increase production. However, the International Energy Agency (IEA) expects increased crude production to help ease the global supply shortfall, which would put pressure on prices. At 7:25 a.m., the January contract for Brent North Sea crude was down 76 cents to $81.67 a barrel. The December contract on Nymex-listed light sweet crude (WTI) was down 78 cents at $79.98 a barrel.