fbpx

European stocks head for higher open as U.S. rally lifts global sentiment

Soegeefx AppsEU MarketEuropean stocks head for higher open as U.S. rally lifts global sentiment

Key Points

  • European stocks are expected to open higher Wednesday, after a rally in U.S. stocks buoyed sentiment in Asia-Pacific markets overnight.
  • The higher open for European markets comes after choppy trade on Tuesday as the relief rally seen in the previous two sessions lost some momentum.

LONDON — European stocks are expected to open higher Wednesday, after a rally in U.S. stocks buoyed sentiment in Asia-Pacific markets overnight.

The U.K.’s FTSE index is expected to open 50 points higher at 7,340, Germany’s DAX 107 points higher at 13,419, France’s CAC 40 up 44 points at 6,247 and Italy’s FTSE MIB 174 points higher at 21,779, according to data from IG.

The higher open for European markets comes after choppy trade on Tuesday as the relief rally seen in the previous two sessions lost some momentum.

U.S. stocks rallied Tuesday, however, with the market resuming a bounce from last month’s lows, as traders bet on strong corporate earnings reports and wagered that markets have found a bottom.

Shares in the Asia-Pacific jumped Wednesday after the sharp bounce in U.S. stocks overnight.

Stock picks and investing trends from CNBC Pro:

Morgan Stanley’s Wilson predicts the S&P 500 trough: It will come ‘pretty quickly’

Morningstar strategist says two FAANG stocks look incredibly cheap right now

What traders are watching for before they believe this comeback is for real

Analyst explains how to trade chip stocks right now — and gives one upside of nearly 100%

Besides the positive lead from Wall Street, there were also reports that Russia and Ukraine are nearing a deal that would end the blockade on grain exports, and that Nord Stream 1 is likely to restart gas exports on schedule after maintenance is completed.

Back in Europe, the European Central Bank’s policy meeting in Frankfurt on Thursday is at the forefront of investors’ minds, with policymakers having given advance notice of a first hike in 11 years. Still, this comes against a backdrop of slowing growth, the war in Ukraine and threats to energy supplies.

Earnings come from AkzoNobel and ASML, and the latest inflation data from the U.K. is due.

Source : CNBC

You might also like

Leave a Reply




Enter Captcha Here :