positive sentiment reverses, data, stocks at a glance
European stocks are expected to open sharply lower on Wednesday, reversing mostly positive trade this week.
The British FTSE index would open 40 points lower at 7,039, the German DAX by 103 points at 15,092, the French CAC 40 by 42 points at 6,530 and the Italian FTSE MIB by 175 points at 25,453, according to the platform of IG online trading.
The lower opening forecast for European markets comes after a rally in the region on Tuesday as regional investors erased losses on Wall Street earlier in the week.
A positive sentiment reversal doesn’t just apply to Europe. US stock futures also fell in trading overnight, and Asia-Pacific stocks were mostly down in trading on Wednesday.
Futures contracts on the Dow Jones Industrial Average slipped 84 points. The S&P 500 and Nasdaq 100 futures have traded in negative territory. In Asia overnight, Japan’s Nikkei 225 lost its earlier gains to fall 1.47%, while the Topix index slipped 0.65%. South Korea’s Kospi fell 1.12%. Mainland Chinese markets remain closed for the holidays on Wednesday.
On the business front in Europe on Wednesday, Tesco releases its half-year results and the data releases include the latest German industrial orders and the most recent reading of Spanish industrial production.
Investors in the region could keep an eye on US data on Wednesday for further guidance on the country’s economic health with the ADP private wage report for September due to be released on Wednesday. The closely watched non-farm payroll report for September is expected to be released on Friday.
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– CNBC’s Hannah Miao and Eustance Huang contributed to this market report.