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European Shares Seen Up Ahead Of Central Bank Meetings

stockmarkets aug17 11sep19 lt

European stocks are likely to open higher on Wednesday, with a growing sense of optimism over China-U.S. trade talks and hopes that global central banks would unleash further stimulus likely to underpin sentiment.

The next round of U.S.-China trade talks are likely to restart next week, with a senior White House adviser urging investors, businesses and the public to be patient about resolving the trade dispute between the world's two largest economies.

Analysts are split over what to expect from the European Central Bank (ECB) on Thursday, while the Federal Reserve is expected to cut interest rates once again when it meets next week.

Meanwhile, after firing his hawkish national security adviser, John Bolton, President Trump said he would name a new person to the role next week.

Bolton was long known to have pushed Trump to be harder on North Korea, Russia and Afghanistan, and was a central player in his more hostile dealings with Iran.

Asian markets traded firm on hopes for a breakthrough in the Sino-U.S. trade dispute while the Chinese yuan inched up against the U.S. dollar after Beijing scrapped foreign quota to allow unfettered access to the stock markets.

Gold edged higher to snap a four-day losing streak on technical buying and the dollar held near a six-week high against the yen while oil prices held firm near their highest levels in six weeks.

Overnight, U.S. stocks ended mixed after the release of underwhelming Chinese inflation data and amid reports that Beijing will buy more American agricultural products to position itself for a better trade deal.

The Dow Jones Industrial Average edged up 0.3 percent and the S&P 500 inched up marginally while the tech-heavy Nasdaq Composite index ended flat with a negative bias.

European markets advanced on Tuesday as investors awaited central bank meetings and watched the latest developments on the Brexit front after British Prime Minister Boris Johnson said that he would not request an extension to Brexit.

The pan European Stoxx 600 gained 0.1 percent. The German DAX and the U.K.'s FTSE 100 both rose around 0.4 percent while France's CAC 40 index inched up 0.1 percent.

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