European stock markets are expected to open lower, with earnings season at the center of attention. The Eurostoxx 50 opened at 3,721.36 points (-0.96%), the CAC 40 at 6,414.57 points (-0.54%), the DAX 40 at 13,756.40 points (-1.20%), the FTSE 100 at 7,386.19 points (+0.08%), the SMI at 11,933.28 points (-1.26%), the AEX opened at 695.57 points (-0.51%), the BEL 20 at 4,112.08 points (-0.30%), the S&P 500 at  4,175.20 points (-2.81%) and the Nikkei 225 at 26,322.73 points (-1.41%).
Regarding exchange rates, the change from the close in New York indicates that EUR/USD is at 1.0647 (+0.08%), EUR/JPY at 135.86 (+0.38%), USD/JPY at 127.62   (+0.31%).
The quarterly corporate publishing season is in full swing on Wednesday in France, with results from STMicroelectronics, Nexans, Dassault Systèmes and Solutions 30. Worldline, Atos, Air Liquide, Schneider Electric, Unibail-Rodamco-Westfield, Plastic Omnium, Ipsen, Interparfums, Groupe ADP, Nexity, Soitec and Alten present their revenues for the first three months of 2022. For its part, Getlink brings together its shareholders in a general meeting.
European equity markets are expected to open lower on Wednesday, in the wake of Wall Street's plunge the day before, as investors focus on the first-quarter earnings season. At 7:25 a.m., the CAC 40 futures contract lost 32 points, or 0.5%, according to data from broker IG Markets. The DAX 40 contract was down 59 points, or 0.4%, and the FTSE 100 contract was down 8 points, or 0.1%.
The quarterly publications of many companies will animate the exchanges on both sides of the Atlantic this Wednesday. The accounts of Boeing and Meta Platforms, the parent company of Facebook and Instagram, will be particularly followed in the United States. On Tuesday night, software giant Microsoft reported better-than-expected results and revenue in the third quarter of its staggered fiscal year, supported by demand for cloud computing services. In response, the stock gained 4.5% in trading following wall street's close.
Wall Street ended sharply lower on Tuesday. Investors fear a slowdown in global growth due to inflation, the expected rise in interest rates and the health crisis in China, and remain concerned about the conflict in Ukraine. The Dow Jones Index (DJIA) closed down 2.4% to 33,239.45 points. The broader S&P 500 index lost 2.8% to 4,175.20 points. The tech-rich Nasdaq Composite fell nearly 4% to 12,490.74 points, falling to its lowest level since late 2020.
Asian stock markets are trading in scattered order on Wednesday. While the Nikkei index lost 1.4% in Tokyo, the Shanghai Composite advanced 1.1%, and in Hong Kong, the Hang Seng gained 0.2%. In addition, the US Senate on Tuesday approved the appointment of Federal Reserve (Fed) Governor Lael Brainard as vice president of the central bank. Lael Brainard was the nominee of US President Joe Biden, who also re-elected the institution's president, Jerome Powell, earlier this year. His appointment was validated by the Senate by a majority of 52 votes to 43.
U.S. Treasury yields are recovering Wednesday morning after losing ground on Tuesday. Ten-year and 30-year bond yields have moved away from their highest levels in more than three years as concerns about China's lockdown measures and their impact on the global economy have triggered a buy-off in bond markets. At 7:25 a.m., the yield on the ten-year Treasury bill stood at 2.770%, against 2.730% on Tuesday night. That of the 30-year-old stock stood at 2.857%, against 2.831%.
The euro rose on Wednesday morning against the dollar. However, the single currency could pull back if the statistics to be released on Friday indicate an acceleration of core inflation in the euro zone and the Federal Reserve's (Fed) preferred measure of inflation, according to BMO Capital Markets.
Oil contracts continue to rise on Wednesday, after China took steps to support its economy and avoided a full lockdown of Beijing in response to rising Covid-19 cases.
At around 7:15 a.m., the June contract for North Sea Brent gained 40 cents to $105.39 a barrel, while the same maturity contract for Nymex-traded light sweet crude (WTI) gained 22 cents to $101.92 a barrel.