European stocks are expected to see a cautious start to the trading day on Wednesday, continuing a lackluster start to trading in June.
London’s FTSE is seen opening 3 points lower at 7,079, Germany’s DAX is seen 20 points higher at 15,588, France’s CAC 40 up 3 points at 6,491 and Italy’s FTSE MIB 4 points higher at 25,332, according to IG.
The cautious start for European markets follows similar sentiment elsewhere following muted action stateside on the first day of June, although there were some gainers during the session, notably in stocks connected to the reopening. Airline and cruise operator companies saw their stocks jump as Covid cases in the U.S. continue to decline.
U.S. stock index futures were little changed during overnight trading on Tuesday, with futures contracts tied to the Dow Jones Industrial Average gained just 23 points. S&P 500 futures and Nasdaq 100 futures both hovered above the flatline.
Inflation fears, and the ways in which the Federal Reserve might respond, have weighed on sentiment recently, although the major averages are still hovering around all-time highs.
Meanwhile, shares in Asia-Pacific were mixed in Wednesday morning trade, with official data showing higher-than-expected growth in Australia’s economy for the first quarter.
There are no major earnings or data releases in Europe on Wednesday, although investors interested in Russia will be watching for comments from officials and business leaders attending the St. Petersburg International Economic Forum.
Russia’s central bank governor, Elvira Nabiullina, told CNBC ahead of the start of the forum that as the economy moves online, digital currencies will be the future of financial systems.
