Economic calendar: German ZEW index, API oil report

• European markets set to open higher

• FOMC rate hike expectations move towards 75 bp

• German ZEW, API report in the calendar

Futures markets point to a higher opening of the European stock market session following yesterday's global sell-off. Moods are slightly better this morning but traders should expect markets to remain nervous until a FOMC decision tomorrow (7:00 pm BST). Market expectations are moving towards a 75 basis point rate hike as inflation remains out of control.

Economic calendar for today is not empty but is quite light. Traders will be offered ZEW index for June during the European morning trade followed by US PPI report and Canadian manufacturing sales in the afternoon. Oil may experience some short-term volatility in the evening when the API report is released. Monthly activity data from China will be released during the upcoming Asian session and may have an impact on sentiment as it will relate to the period when pandemic restrictions were largely lifted.

10:00 am BST - Germany, ZEW index for June. Expected: -27.5. Previous: -34.3

1:30 pm BST - US, PPI inflation for May.

• Headline. Expected: 10.9% YoY. Previous: 11.0% YoY

• Core. Expected: 8.6% YoY. Previous: 8.8% YoY

1:30 pm BST - Canada, manufacturing sales for April. Expected: 1.5% MoM. Previous: 2.5% MoM

9:40 pm BST - API report on US oil inventories. Expected: +0.5 mb

Asian session ahead

• 0:50 am BST - Japan, machinery orders for April

• 3:00 am BST - China, monthly activity data for May (retail sales, industrial production, urban investments)

Central bankers' speeches

• 6:20 pm BST - ECB Schnabel