European markets to open mixed as sentiment settles after global rally
European markets were set to open mixed on Wednesday morning, as traders paused for breath after a global rally spurred by gains for tech shares on Wall Street.
The FTSE 100 is seen 17 points lower at 7,369; the DAX is expected to open up by 5 points at 12,232 and the CAC 40 is set to open 6 points lower at 5,127.
Asian stocks steadied on Wednesday, unable to sustain momentum after shares had surged in the previous session.
The dollar gyrated overnight against the yen following campaign rally threats from President Donald Trump as the former New York businessman suggested he could force a government shut down over funding for a border wall. However, the dollar eventually pared its losses.
On Wednesday, investors will be braced for some volatility risks as European Central Bank President Mario Draghi is scheduled to speak at the Lindau Meeting on Economic Sciences in Germany.
Meanwhile, the U.K. government is expected to publish the “future partnership paper on civil judicial cooperation” at around midday on Wednesday London time. The paper is set to reveal Westminster’s plans for the role of the European Court of Justice in Britain post-Brexit.
On the data front, the euro area is expected to receive Markit manufacturing PMIs (purchasing managers’ index) for August at around 9 a.m. London time, with consumer confidence data for August to follow at around 3 p.m.
Later this week, Federal Reserve Chair Janet Yellen is poised to speak at Jackson Hole’s annual central banking conference, though further clues regarding the U.S. central bank’s monetary policy is viewed as unlikely.
Meanwhile, analysts predicted Draghi would refrain from using language that could potentially excite markets in his speech in Wyoming, having been scarred by recent experience at another banking conference in Portugal.
Source: CNBC
