European markets seen higher amid earnings and a Fed meeting

European markets are expected to open higher Wednesday as investors keep their focus on earnings and monitor an upcoming Federal Reserve meeting.

The FTSE 100 is seen up by 23 points at 7,541; the DAX is set to start higher by 50 points at 12,577; and the CAC 40 in Paris is seen up by 15 points at 5,494; according to IG.

In Asia, stocks traded mixed as many bourses reopened after a public holiday. In currency markets, the dollar eased slightly early on Wednesday morning, after trading close to a four-month high. On Tuesday, strong U.S. economic data drove the currency higher.

The benchmark will remain under investors’ radar as the Federal Reserve is due to start a two-day monetary policy meeting on Wednesday. Market expectations suggest that there will be no new rate hikes in the U.S., but analysts will be looking for indications as to whether that will happen shortly.

Meanwhile, markets will be digesting further earnings. Novo Nordisk, Hugo Boss, Glencore, Sainsbury’s, Sage and Standard Chartered are among the companies releasing their latest figures Wednesday.

In Brussels, the European Commission will unveil its first budget plan without the U.K. The proposal, which will apply from 2021 to 2027, is set to increase the seven-year budget to about 1.25 trillion euros ($ 1.5 trillion), the Financial Times reported.

In terms of data, there will be PMIs across Europe, with the euro zone releasing its final April figure at 9 a.m. London time. There will also be flash first quarterly growth figures for the euro zone at 10 a.m. London time. The data comes a time when many analysts have started wondering about a potential economic slowdown in the euro area.

Source: CNBC