Sluggish German industrial orders and increasing oil costs contributed to fears about global growth. As a result, markets are set to open lower.

As sluggish German industrial orders and increasing oil costs contributed to fears about global growth, European stock markets are anticipated to begin lower on Wednesday.

Following a 7.0% increase in June, data released on Wednesday indicated that German manufacturing orders dropped 11.7% in July.

Without the significant increases in the aerospace industry that enabled June's substantial increase, overall monthly activity would have decreased by 2.6%.

The industrial sector of the biggest economy in the eurozone is still showing a very poor overall picture notwithstanding the decline in July.

German, British, and eurozone manufacturing figures showed decreases on Tuesday, while their service sectors saw shrinkage.

Looking at the eurozone as an entire area, retail sales are predicted to have declined in July, indicating that the region's consumers are still feeling the effects of high inflation.

Retail sales are predicted to have decreased 0.1% for the month in July and 1.2% on an annual basis, according to data that will be released later in the session.

The probability that the European Central Bank's officials would agree to a break in the rate-hiking cycle has increased ahead of the bank's meeting the following week due to a string of weak eurozone statistics.

Oil trading around 10-month highs after major producers Saudi Arabia and Russia unexpectedly extended their voluntary supply cutbacks until the end of the year added to the region's potential challenges.

The decision startled traders who had been hoping for extensions just through the end of October, and now it is possible that this year's oil markets will become significantly tighter.

An increase in the price of oil raises a number of concerns about inflation, the influence on monetary policy by central banks, and what it implies for a global economy already struggling with low demand and China's sputtering economy.

(Sources: investing.com, reuters.com)