European markets head for lower open, shrugging off positive PMI data

Holly Ellyatt

European markets are heading for a negative open on Wednesday, continuing a negative trend seen at the end of Tuesday’s trading session, despite data out of the eurozone showing an uptick in business activity in the region’s services and manufacturing sectors.

The S&P Global eurozone composite purchasing managers’ index came in at 50.2 in January, up from 49.3 in December and ahead of a consensus forecast of 49.8. The 50 mark separates expansion from contraction.

On Wednesday, investors will be looking out for the latest Ifo business climate survey data out of Germany for January to get another gauge of economic sentiment in Europe’s largest economy.

U.S. and Germany expected to approve tanks for Ukraine

The U.S. and Germany are believed to be on the cusp of agreeing to deliver modern battle tanks to Ukraine after months of indecision and debate over the issue.

Reports late Tuesday suggested that German Chancellor Olaf Scholz was ready to agree to sending a number of Leopard 2 tanks to Ukraine, and to allow allies to do the same with their own German-made tanks.

European markets: Here are the opening calls

European markets are heading for a negative open Wednesday.

The U.K.’s FTSE 100 index is expected to open 2 points lower at 7,765, Germany’s DAX 28 points lower at 15,070, France’s CAC down 8 points at 7,040 and Italy’s FTSE MIB 65 points lower at 25,888, according to data from IG.

There are no major earnings releases today, but market participants will be keeping an eye on the latest Ifo business climate survey from Germany.

— Holly Ellyatt

CNBC Pro: Analysts like this indie game developer — with one bank saying it could soar over 200%

Shares of an indie video game developer are set to rise by more than 200%, according to Berenberg, which said the company provided a “very encouraging” 2023 outlook.

The investment bank isn’t the only one that likes the developer — although it’s the most bullish. The consensus price target of six analysts covering the stock indicates a potential upside of over 70%, according to FactSet data. All but one have a buy rating on the company’s shares.

— Ganesh Rao