European stocks are set to open Wednesday’s session in the black, clawing their way back from the sharp losses seen in the previous session.
The FTSE 100 is seen 15 points up at 6,965, the CAC 40 is set to open 20 points higher at 4,943, while the DAX is poised to start the session on a positive note, up 46 points at 11,110, according to IG.
Markets around the globe have been under pressure in recent hours, with stocks in Asia dipping into negative territory after Wall Street finished Tuesday’s session deep in red. The Dow Jones Industrial Average tumbled some 550 points by the close, with the S&P 500 dropping 1.8 percent as tech stocks and retailers underperformed.
As investors in Europe prepare for another trading day, there’s a whole host of topics to keep them busy including the recent bounce back in oil prices.
Crude futures posted sharp gains before the open following the previous session’s nose-dive. According to Reuters, prices have been supported by a recent report that showed an unanticipated drop in U.S. commercial crude inventories, yet market-watchers continue to show signs of caution, following recent volatility in the market.
Elsewhere, investors will be keeping a close eye on political developments, as fresh news continues to rattle sentiment. Looking to Europe, U.K. Prime Minister Theresa May is expected to make an appearance in Brussels on Wednesday, as she discusses the current state of Brexit negotiations with the President of the European Commission, Jean-Claude Juncker.
The British leader is currently facing opposition from politicians in her home country over the current draft withdrawal agreement; and concerns that she could face a possible vote of no-confidence continues to add nervousness to markets. This Sunday, a summit between leading European Union officials is expected to take place, where the political situation will be discussed and EU leaders could approve the deal.
Sticking with politics, investors will also be keeping watch of any news out of the U.S., as its trade relations with China and the ongoing investigation into Russian interference in the 2016 presidential election continue to be of key focus for markets. President Trump’s decision to give his support to Saudi Arabia despite international outrage over the murder of Saudi journalist Jamal Khashoggi, has also come in for criticism.
In stock news, Renault will continue to be watched, as the debacle surrounding Nissan’s Chairman Carlos Ghosn and allegations surrounding financial misconduct continue to linger.
A slew of companies are due to report financial updates, including Sage, TalkTalk, Kingfisher and Thyssenkrupp.
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