Investors will likely react in a mixed manner at the open to both the softer-than-expected U.S. inflation statistics and the disappointing U.K. GDP figures.

Investors will likely react in a mixed manner to both the softer-than-expected U.S. inflation statistics and the disappointing U.K. GDP figures as European stock markets open.

A flood of economic data from the U.K. was released earlier on Thursday, showing that GDP, industrial output, and manufacturing production all decreased in May compared to the prior month.

In an effort to control the highest G7 inflation rate, the Bank of England has authorised 13 straight interest rate increases. With further increases probable, these data indicate that Britain is about to enter a recession.

The European Central Bank also releases its June policy minutes.

The earlier Thursday news from China wasn't much better either; according to data, exports fell 12.4% annually in June, which was the lowest rate since March 2020, when the COVID-19 epidemic was at its worst.

Additionally, imports decreased by 6.8% in June, a sharper decline than the 4.5% witnessed in May and at their quickest rate since March of this year.

These figures highlight the severity of the slowdown in China's newly opened economy, which is harming several of the continent's largest exporters.

On the strength of stronger Chinese monthly oil imports and softer-than-expected U.S. inflation statistics, oil prices increased marginally on Thursday, holding close to three-month highs.

According to customs statistics issued on Thursday, China's oil imports in June increased by over 45% year over year and reached its second-highest monthly amount on record, providing optimism for a recovery in the world's second-largest economy and top petroleum importer.

Gains, nevertheless, have been constrained by an unanticipated rise in U.S. oil stockpiles; according to the Energy Information Administration, stocks increased by 5.95 million barrels in the week ending July 7, far more than anticipated.

Key Events:

• ECB Minutes at 12:30 GMT
• US Initial Jobless Claims at 13:30 GMT
• US PPI (MoM) (Jun) at 13:30 GMT.

(Sources: investing.com, reuters.com)