Stock markets are set to open a little higher as investors look to make up for recent losses while taking in more quarterly corporate earnings.

Wednesday's opening of European stock markets is anticipated to be higher as investors look to make up for recent losses while taking in more quarterly corporate earnings.

The financial sector's weakness as well as dismal trade statistics from China, a significant export market for many of Europe's greatest corporations, contributed to a lower closing price for the major European indices on Tuesday, with Germany's DAX down more than 1%.

The mood is more upbeat on Wednesday, however, gains are expected to be limited by China's announcement of weak inflation data, which suggests the second-largest economy in the world is still having difficulty following a disastrous second quarter.

China’s PPI decreased by 4.4% in July while the CPI was down 0.3%, marking the first yearly decline in the CPI since September 2021.

Over in Europe, the banking industry will continue to be watched closely after suffering significant losses during the previous session as a result of the Italian government's unexpected imposition of a 40% windfall tax on its institutions.

Late on Tuesday, the Italian government provided clarification, noting that the new levy may not exceed 0.1% of a lender's total assets, but investors should remain on the lookout for similar actions in other nations.

Investors will also be paying close attention to Walt Disney's financial results in order to get any information on the future of the sports channel ESPN and the movie studio's strategies for dealing with the ongoing Hollywood writer and actor strike.

The world's top oil importer, China, and signs of a significant weekly gain in U.S. stockpiles both contributed to a decline in oil prices early Wednesday.

API data revealed that U.S. oil stockpiles increased by nearly 4 million barrels in the week leading up to July 28, above forecasts for a little decline.

Later in the day, the EIA is expected to release official inventory statistics amid worries that American gasoline consumption may be declining as the end of the summer season draws near.

(Sources: investing.com, reuters.com)