The U.K GDP shrinks, both oil and gold move ahead of U.S inflation data and some key developments for traders ahead of today.

A look at the day ahead in European and global markets…

Bank of England’s Andrew Bailey has made it clear on Tuesday that the current UK government cannot rely on defending markets from the fallout of a poorly designed economic revival strategy for more than three days. Meanwhile, Financial Times reported that the BoE is set to extend its emergency bond-buying programme beyond the Friday deadline, all depends on whether market conditions are desperate for it.

The release of the GDP data earlier this morning has already given investors an idea of the health of the nation, manufacturing output and construction both fell slightly. While the leisure and health units fell sharply, overall GDP declined 0.3% from July. 

Truss and Kwarteng promise to speed up economic growth, however their plot for unfunded tax cuts has increased the likelihood for BoE to push borrowing costs. 

Both oil and gold prices moved slightly as investors avoid big bets ahead of key US inflation data this week. US inflation data is key for oil and metal markets, PPI data is due later today.

Key developments that could affect markets on Wednesday:

• Euro zone industrial production (10:00 GMT)
• US OPEC monthly report (12:00 GMT)
• US September PPI (13:30 GMT)
• Federal Reserve meeting minutes (19:00 GMT)
• API weekly crude oil stock (21:30 GMT) 

Some well-known company earnings today also :

• PepsiCo
• Wipro ADR
• ASOS
• Domino’s Pizza