LONDON – European stocks are expected to open higher on Wednesday as markets look to reverse the negative slide in the previous session.
UK FTSE The index is seen opening 79 points higher at 7,096, of Germany DAX 159 points higher at 12,550, of France CAC 40 up 82 points at 5,867, and of Italy FTSE MIB 270 points higher at 20,842, according to data from IG.
Expected higher openness to Europe comes after the European Union Stoxx 600 closed 2.1% lower on Tuesday as recession fears increased in the region.
The Sentix economic index in July Monday showed investor morale across the 19-nation eurozone fell to its lowest level since May 2020, heading for an “inevitable” recession.
On Tuesday, euro falling lowest level in two decades as recession fears grow, with gas prices soaring and the Ukraine war showing no signs of abating.
US Stocks also fell on Tuesday before starting a late recovery. Outside investors are looking forward to the announcement US Federal ReserveMinutes from the Federal Open Market Committee’s latest meeting on Wednesday.
US data released this week also includes June jobs report on Friday. According to Dow Jones estimates, job growth is likely to slow in June, with 250,000 nonfarm payrolls added, down from 390,000 in May. Surveyed economists expect the unemployment rate to hold at 3.6%.
In Europe, euro area retail sales data for May will be released. On the corporate front, GSK will hold its extraordinary annual general meeting and BMW will announce second-quarter sales.
