Shares in Europe to open slightly higher; Italy spending in focus

Shares in Europe are set to open slightly higher on Wednesday, as markets player keep an eye on Italian politics and spending plans.

The FTSE 100 is seen up by 2 points at 7,476; the CAC 40 is expected to open higher by 6 points at 5,473; and the DAX 30 is set to start higher by 7 points at 12,294; according to IG.

In Italy, FTSE MIB, the main index is poised at open off by 40 points at 20, 522, also according to IG. Investors remain concerned over extra spending in Italy, given the country’s large debt pile.

The Italian newspaper Corriere della Sera reported Wednesday that the government is planning to lower deficit from 2.2 percent in 2020, to 2 percent in 2021, from an expected 2.4 percent next year.

The latter figure is three times higher than what the previous government had planned. However, the willingness to decrease spending in the coming year has lifted the euro. The common currency rose 0.3 percent against the dollar to $1.15 following the report.

Meanwhile, Brexit continues to dominate investor sentiment. U.K. Prime Minister Theresa May is due to speak later on Wednesday morning, during her party’s conference in Birmingham.

In the corporate world, Tesco, Standard Life and Sinclair Pharma are expected to announce their results on Wednesday.

On the data front, there will be retail sales due at 10 a.m. London time.

Source: CNBC