European stocks to open lower; trade war, earnings in focus
European stocks are expected to open lower on Wednesday as investors continue to monitor U.S.-China relations and corporate earnings.
The FTSE is set to open 23 points lower at 7,364, while the DAX is expected to open 21 points lower at 13,127, and France’s CAC is seen 8 points lower at 5,838, according to IG.
China is reportedly pressing U.S. President Donald Trump to roll back tariffs the U.S. imposed in September before a “phase one” trade deal is signed between the world’s two biggest economies.
UN economists warned in a report on Tuesday that the Sino-U.S. trade war was a “lose-lose” situation, costing China $35 billion in the first half of this year while U.S. consumers and companies bore the brunt of the most expensive tariffs.
Meanwhile, Reuters reported on Tuesday that finalizing a location for a meeting between Trump and Chinese leader Xi Jinping has become another hurdle for the deal.
However, traders are largely optimistic that the preliminary agreement could be signed as early as this month.
Asian shares traded mixed on Wednesday, with MSCI’s Asia-Pacific index excluding Japan edging slightly lower. Singapore’s Straits Times index led regional gains, adding 0.3 percent.
Back in Europe, IHS Markit will publish composite PMI data for the euro zone at 9:00 a.m. London time.
Market focus will also be largely attuned to corporate earnings.
French lender Societe Generale on Wednesday posted a net income of 854 million euros ($945 million) for the third quarter, slightly below expectations.
Adidas, meanwhile, reported a 6 percent year-on-year increase in sales and flat operating profit, confirming its full-year outlook. CEO Kasper Rorsted said in a press release Wednesday that 2019 would be a record year for the German athletic wear brand.
BMW and Marks & Spencer are also among the firms due to report on Wednesday.
Elsewhere, British Prime Minister Boris Johnson will formally announce on Wednesday that a general election will be held on December 12 in the United Kingdom. He will pledge in his announcement to “get Brexit done in the next few weeks,” Reuters reported.
Source: CNBC
