European stock markets are anticipated to begin broadly higher on Wednesday as investors reflect on remarks made by Fed Chair Jerome Powell.

As investors reflected on remarks made by Federal Reserve Chair Jerome Powell ahead of more significant corporate earnings, European stock markets are anticipated to begin broadly higher on Wednesday.

Wall Street, which finished substantially higher on Tuesday after Federal Reserve Chair Jerome Powell adopted a less aggressive tone than expected at a speech at the Economic Club of Washington, D.C., is likely to set the tone for European equities.

After a string of abrupt interest rate increases through 2022, Powell said that the United States was suffering disinflation. Investors have seen his remarks positively as they search for indications that the Fed is about to pause its rate rises, despite the fact that Powell also cautioned that more rate increases are still needed.

The positive U.S. jobs data on Friday, which was regarded as providing the Fed more economic leeway to keep raising interest rates, was followed by his speech.

The quarter-end results season is still in full swing in Europe.

Despite forecasting a 64% decline in yearly earnings in 2022, Societe Generale SA, France's third-largest bank, reported a higher-than-expected profit in the fourth quarter. This was made possible by the robust performance of its corporate and investment banking business.

The Norwegian oil and gas giant Equinor announced a record adjusted operating profit of $74.9 billion for 2022, more than double its prior high.

The American Petroleum Institute's positive inventory statistics helped up oil prices Wednesday, adding to previous gains on hope for a revival in demand from China.

Compared to estimates of an increase of 2.5 million barrels, the industry association said that oil stocks decreased by roughly 2.2 million barrels in the week ending February 3.

Later in the session, the U.S. Energy Information Administration is expected to provide the official inventory figures.

(Investing.com, Reuters.com)