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European markets set for mixed open amid Brexit uncertainty, gains

European markets traded mixed in premarket trade Wednesday, amid investors keeping a close eye on Brexit developments and corporate earnings.

Opening calls from IG index show a fairly flat open this morning with the U.K.’s FTSE 100 called barely higher, up 1 point at 7,727; the German DAX up 3 points at 12,660; France’s CAC 16 points higher at 21,834; and the Italian FTSE MIB down 7 points at 5,520.

In Asia, equities were mixed, following on from a session of gains in Wall Street on Tuesday. Telecommunications tower operator China Tower went public on Wednesday — the world’s largest public offering (IPO) in two years — but the stock was relatively flat, dampened by U.S.-China trade uncertainty.

In the U.S., stocks closed higher on Tuesday with the S&P 500 inches away from setting a new record. Traders and market observers were given a surprise from Elon Musk’s Tesla on Tuesday, after the firm’s boss said he was considering taking it private at $420 a share.

Tesla shares jumped by as much as 8.5 percent following Musk’s announcement; trading of the stock was then halted, and the share price surged once again after trade resumed.

Meanwhile, traders continued to monitor developments around the U.K.’s withdrawal from the European Union. A monthly survey published by the Recruitment and Employment Confederation (REC) Wednesday showed hiring slowed last month, as employers reported a shortage of EU migrant workers available for work.

The Bank of England is due to release a report on domestic business conditions on Wednesday morning, data which will likely provide an insight into business sentiment around Brexit.

In corporate news, 21st Century Fox filed paperwork for its proposed £14 ($18) per share takeover of British broadcaster Sky on Tuesday, although it is still short of Comcast’s £14.75 per share bid for the coveted media asset. Novo Nordisk, E.ON, Munich Re, Ahold Delhaize, ABN Amro, Glencore, and Prudential are all set to report earnings Wednesday.

The data front in Europe seems fairly quiet, with the exception of Spain releasing June year-on-year industrial production figures.

Source: CNBC

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