European markets to begin trade on back foot, earnings season is in full swing

European markets are set to begin trade on Wednesday in negative territory.

The German DAX is seen 22 points lower at 12,800. Meanwhile, the U.K. FTSE is anticipated to open 20 points lower at 7,742. The French CAC is expected to open 17 points below the flat line at 5,500.

The anticipated lower open contrasts with positive sentiment in Asia and a higher close in U.S. markets, with both regions’ stocks boosted by news that China and the U.S. may recommence talks over a tit-for-tat war on import tariffs.

Wednesday is busy for corporate releases in Europe.

French bank BNP Paribas has just published its second-quarter earnings report. Italian insurer Generali and investment bank Mediobanca are also to report their latest numbers. Steel manufacturer ArcelorMittal will publish its second quarter earnings data, while U.K.-listed miner Rio Tinto will also report interim results. Other blue chips set to report include Air France-KLM, VW, Lloyds, BAE Systems and Man Group.

Markit manufacturing PMIs for July will be published for the European area on Wednesday morning, as well as its individual major economies.

Concerning politics in Europe, U.K. Prime Minister Theresa May is to hold Brexit talks with French President Emmanuel Macron in France on Friday, Downing Street has said.

Stateside, the U.S. Federal Reserve is to release its decision on interests rates for the world’s largest economy at 2 p.m. E.D.T.

Source: CNBC

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