European markets nudge higher, bucking negative global trend

European markets ticked higher on Wednesday, bucking a more negative trend in Asia-Pacific markets overnight and after Wall Street’s losing streak stretched into its third day.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE	VOLUME
.FTSE	FTSE 100	*FTSE	7351.13	-10.5	-0.14	43496346
.GDAXI	DAX	*DAX	12940.15	-20.99	-0.16	5917685
.FCHI	CAC 40 Index	CAC	6186.27	-23.95	-0.39	7105451

The pan-European Stoxx 600 added 0.3% in early trade, with tech stocks climbing 1.6% to lead gains as most sectors and major bourses entered positive territory.

Market jitters have been prevalent since Friday after hawkish remarks from Federal Reserve Chair Jerome Powell. On Tuesday, New York Fed President John Williams called for a “somewhat restrictive policy to slow demand.”

Shares in the Asia-Pacific fell in Wednesday trade following a negative lead from Wall Street, and as investors digest China’s factory activity data. Meanwhile, U.S. stock futures were flat in overnight trading.

Stocks on the move: Ackermans & van Haaren up 6%, Drax down 2%

There was little by way of substantial individual share price movement on the Stoxx 600 in early trade.

Belgian diversified group Ackermans & van Haaren climbed 6.6% to lead the index after its first-half results, while British power group Drax slipped 2.5%.

– Elliot Smith

CNBC Pro: What poses the biggest risk to stocks? Wall Street is watching these indicators closely

Stocks have taken yet another turn lower after U.S. Federal Reserve Chairman Jerome Powell made clear last week that rate hikes are set to continue — even if they cause more pain ahead.

What could drive the next leg down for stocks? Morgan Stanley and Wolfe Research have identified a number of indicators they expect to determine market moves looking ahead.

— Weizhen Tan

China’s factory activity contracted in August, official data shows

China’s official manufacturing Purchasing Managers’ Index for August stood at 49.4, official data showed.

That’s the second monthly contraction, but is better than the 49.2that analysts expected, according to a Reuters poll. The PMI in July was at 49.

PMI readings are sequential and represent month-on-month expansion or contraction. The 50-point mark that separates growth from contraction.

The non-manufacturing PMI came in at 52.6 for August, compared with a reading of 53.8 in July.

— Abigail Ng

CNBC Pro: Morgan Stanley names 3 EV stocks to cash in on Beijing’s auto sector boost

China’s government is striving to boost auto sales, and this is likely to benefit electric vehicles more than their petrol-based counterparts, according to Morgan Stanley.

“While China braces for its slowest quarterly economic growth in two years, the car industry is benefiting from multifaceted stimulus offered by central and local governments,” the bank’s analysts said in a note this month.

They named three buy-rated stocks they expect to get a boost from the measures.

— Zavier Ong

European markets: Here are the opening calls

European stocks are expected to open cautiously higher on Wednesday with the U.K.’s FTSE index seen 18 points higher at 7,560, Germany’s DAX 33 points higher at 13,944, France’s CAC 40 up 18 points at 6,616 and Italy’s FTSE MIB

up 42 points at 23,029, according to data from IG.

Data releases include preliminary euro zone unemployment data for the second quarter as well as second quarter gross domestic product. The latest U.K. inflation numbers for July will be released as well as preliminary second quarter Dutch GDP.

Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.

Source : CNBC