KEY POINTS
European stocks are expected to bounce back at the open on Wednesday after euro zone inflation data on Tuesday rattled market sentiment in the region.
London’s FTSE is seen opening 31 points higher at 7,139, Germany’s DAX 63 points higher at 15,866, France’s CAC 40 up 40 points at 6,705 and Italy’s FTSE MIB 80 points higher at 26,097, according to IG.
LONDON — European stocks are expected to bounce back at the open on Wednesday after euro zone inflation data on Tuesday rattled market sentiment in the region.
London’s FTSE is seen opening 31 points higher at 7,139, Germany’s DAX 63 points higher at 15,866, France’s CAC 40 up 40 points at 6,705 and Italy’s FTSE MIB 80 points higher at 26,097, according to IG.
The positive open comes after markets were rattled on Tuesday following the release of euro zone inflation data for August which showed consumer prices increased by 3% this month from a year ago, according to preliminary estimates. This was far above expectations and the European Central Bank’s 2% target. The data will put pressure on the central bank to address inflation concerns at a key meeting next week.
Overnight, shares in Asia-Pacific were mostly higher in Wednesday trade, as a private survey showed shrinking Chinese factory activity in August.
The Caixin/Markit manufacturing Purchasing Managers’ Index for August came in at 49.2 on Wednesday, below the 50 mark that separates expansion from contraction.
The Wednesday private survey release came after the official manufacturing PMI released Tuesday showed slowing Chinese factory activity growth in August, coming in at 50.1 against July’s reading of 50.4.
U.S. stock futures were slightly higher overnight after the S&P 500 notched a seven-month win streak in August.
Investors are focused on August U.S. nonfarm payrolls data, which is scheduled to be released later this week, for insight into the possible path of Fed’s monetary policy. Dow Jones economists expect 750,000 jobs were created in August and the unemployment rate fell to 5.2%
Data releases from Europe on Wednesday include the latest euro zone unemployment figures for July, German retail sales for July and August manufacturing PMI data for a handful of European countries.
Earnings come from Pernod Ricard and airline SAS.
