European markets set for higher open as investors monitor earnings, data

LONDON — European stocks are expected to open higher Wednesday as investors digest a fresh round of corporate earnings and key economic data out of the euro zone.

Britain’s FTSE 100 is set to climb around 39 points to 6,962, Germany’s DAX is expected to gain around 97 points to 14,953 and France’s CAC 40 is seen around 16 points higher at 6,268, according to IG data.

Shares in Asia-Pacific were mostly subdued on Wednesday after a stateside sell-off in tech stocks, with major markets in China and Japan still closed for holidays. U.S. futures are indicating a cautiously positive open on Wall Street later in the day.

European shares will be looking to rebound Wednesday after a sharp nosedive late in Tuesday’s session, with the tech sector plunging 3.8% as tech stocks around the world tumbled amid fears over high valuations and the reopening of economies, after tough coronavirus restrictions that heavily benefited tech.

Final composite and services PMI (purchasing managers’ index) readings for April are due out of Italy, Germany, France and the wider euro zone on Wednesday morning, offering an insight into the state of the common currency bloc’s economic recovery.

Euro zone producer prices for March will also be published.

It’s another busy day for corporate earnings on Wednesday in Europe with Stellantis, Allianz, Commerzbank and Deutsche Post DHL Group among those reporting before the bell.

Leave a Reply