European stock markets begin relatively flat on Wednesday with minimal positioning as investors await next week's central bank meeting.

As investors process the deteriorating economic situation before next week's important central bank meetings, European stock markets begin relatively flat on Wednesday with minimal positioning.

Following the announcement of poor trade statistics from China, the largest economy in Asia and a significant trading market for the biggest corporations in Europe, stock gains in Europe are expected to be restricted on Wednesday.

May was the lowest surplus in China's trade balance since April 2022, when COVID shut down a number of international marketplaces, with a surplus of $65.8 billion. Although imports also decreased by 4.5%, the main cause of this dip was a larger-than-anticipated 7.5% drop in exports in May compared to the same month last year.

Meanwhile in Europe, German industrial production increased by just 0.3% on a monthly basis in April, a little improvement over the revised 2.1% decline the previous month.

A handful of ECB officials are scheduled to speak on Wednesday, and investors will be seeking more direction before the European Central Bank's policy-setting meeting next week.

The president of the eurozone's central bank, Christine Lagarde, confirmed predictions when she said that despite "signs of moderation," it was too soon to declare a peak in core inflation.

Oil prices dropped further on Wednesday, dampening hopes that the world's top crude importer could propel oil demand to all-time highs this year. Weak Chinese trade data had raised worries about a slowdown in the nation's post-COVID economic rebound.

U.S. oil stockpiles decreased more than anticipated last week, according to industry statistics released late Tuesday, but an unexpected rise in gasoline supplies hurt mood in the heart of the U.S. driving season.

(Sources: investing.com, reuters.com)