European stock markets are anticipated to start the day higher on Wednesday thanks to encouraging indicators from China's crucial manufacturing sector.

In front of a flood of economic data, European stock markets are anticipated to start the day higher on Wednesday thanks to encouraging indicators from China's crucial manufacturing sector.

In February, China's industrial activity increased at its quickest rate in more than a decade as the country's recovery picked up steam following the easing of its harsh anti-COVID regulations.

According to statistics released on Wednesday, the closely monitored manufacturing Purchasing Managers' Index increased to 52.6 in February from 50.1 in January.

Even higher results were seen in China's non-manufacturing PMI, which increased to 56.3 in February from 54.4 the previous month.

This report of expansion in one of Europe's major export markets is expected to bolster European markets on Wednesday.

Tuesday's inflation figures for France and Spain both came in higher than estimated, indicating that the European Central Bank would likely keep raising borrowing costs going forward.

Throughout the day, investors will have access to further economic data, such as the German unemployment rate and S&P global manufacturing PMIs for the Eurozone, Germany, and France.

In the corporate world, earnings from British house builder Persimmon will be in the focus, while Cellnex, Europe's largest mobile phone tower operator, revealed a decrease in its full-year net loss while surpassing its core earnings forecast.

The stronger-than-expected report on Chinese industrial activity on Wednesday increased confidence in the recovery of the largest crude importer in the world.

The United States, the world's largest oil user and producer, has seen another major increase in its petroleum stocks, although this has been obscured.

The American Petroleum Institute said that last week's stock increase was 6.2 million barrels. Later in the session, the official U.S. government figures are due.

Key Developments Today:

• German PMI & Unemployment Change due at 08:55 GMT.
• UK PMI due at 09:30 GMT.
• German Preliminary CPI (Feb) due at 13:00 GMT.
• Crude Oil Inventories are due at 15:30 GMT.

(Investing.com, Reuters.com)