European annualized inflation estimates are expected to rise by 3.4%, down from March's rise of 3.5%.

Economists from BNP Paribas said they are expecting a decline in inflation in the first in eight months, but that they expect it to remain above 3.0%.

"Inflation was high amongst the largest countries of the euro zone, above 3% in Germany, France and Italy and even above 4% in Spain. Food prices continued to rise on their past trend," said economists from BNP Paribas in a research note.

April's German employment report is expected to show a fall of 30,000 jobs following a decline of 55,000 jobs in March. The employment rate is expected to remain steady at 7.8%. The ILO unemployment rate is also expected to remain steady at 7.4%.

Looking at European employment for April, economists expect the employment rate to remain steady at 7.1%.

Finally, euro zone consumer confidence for April is expected to show a reading of -13 following March's level of -12. Looking at a breakdown of the report, the economic confidence is expected to show a reading of 98.9, down from the previous month's 99.6. The industry confidence is expected show a reading of -1.0 following March's reading of 0. Finally, services confidence is expected to remain steady at last month's reading of 9.

In the UK, the Bank of England will release its financial stability report.

All times in EDT.

Wednesday

2:00 UK Nationwide House prices (SA) (M/M) April Exp: -0.5% Prior: -0.6%

2:00 UK Nationwide House prices (NSA) (Y/Y) April Exp: Unchanged Prior: +1.1%

2:00 EU German ILO Unemployment Rate March Exp: 7.4% Prior: 7.4%

3:55 EU German Unemployment Rate (SA) April Exp: 7.8% Prior: 7.8%

3:55 EU German Unemployment Change April Exp: -30K Prior: -55K

5:00 EU Euro Zone CPI Estimate (Y/Y) April Exp: +3.4% Prior: +3.5%

5:00 EU Euro Zone Unemployment Rate March Exp: 7.1% Prior: 7.1%

5:00 EU Business Climate Indicator April Exp: 0.69 Prior: 0.8

5:00 EU Euro Zone Consumer Confidence April Exp: -13 Prior: -12

5:00 EU Euro Zone Economic Confidence April Exp: 98.9 Prior: 99.6

5:00 EU Euro Zone Industry Confidence April Exp:-1.0 Prior: 0

5:00 EU Euro Zone Services Confidence April Exp: 9 Prior: 9

7:55 EU ECB's Trichet speaks in Aachen, Germany

11:30 EU ECB's Garganas speaks at an Event in London

19:01 UK Bank of England to release Financial Stability Report

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