European markets head for flat open as nervousness over the global economy dominates sentiment

Holly Ellyatt

European markets are heading for a mixed open Thursday as investor nervousness continues over the state of the global economy and inflation.

The U.S. Federal Reserve is expected to issue a 50 basis point interest rate hike next week and while that would be a smaller increase than recent rate hikes, investors are increasingly concerned about whether the central bank can avoid a recession next year in its attempt to squash inflation.

U.S. stock futures were down slightly on Thursday morning following a fifth straight day of losses for the S&P 500 as Wall Street weighed the likelihood of a downturn.

Sentiment was more buoyant in the Asia-Pacific region overnight. Hong Kong’s Hang Seng index popped on Thursday, as a local news outlet reported the city is considering easing Covid measures further, including lifting its outdoor mask rule and relaxing mandatory testing for arrivals.

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European markets: Here are the opening calls

European markets are heading for a mixed open on Thursday with investor jitters continuing on recession concerns.

The U.K.’s FTSE index is expected to open 4 points higher at 7,493, Germany’s DAX 12 points lower at 14,249, France’s CAC down 8 points at 6,653 and Italy’s FTSE MIB down 37 points at 24,204, according to data from IG.

There are no major earnings or data releases.

— Holly Ellyatt

Source : CNBC