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European Shares Seen Lower At Open

stockmarkets dec26 16oct19 lt

European stocks look set to open a tad lower on Wednesday after strong gains in the previous session, driven by healthy earnings reports from U.S. companies.

Asian markets are trading mostly higher despite lingering growth worries and China threatening to retaliate if U.S. passes the Hong Kong bill.

The International Monetary Fund has further downgraded its outlook for the world economy, saying that growth this year will be the weakest since the 2008 financial crisis primarily because of widening global conflicts.

Gold edged higher after losing nearly 1 percent in the previous session while the British pound fell from its highest level in almost five months versus the U.S. dollar. Oil prices rose amid signals from OPEC and its allies that further supply curbs could be possible.

Consumer price data from the U.K. is due later in the day, headlining a light day for the European economic news.

Across the Atlantic, trading may be impacted by reaction to reports on retail sales and homebuilder confidence as well as the Federal Reserve's Beige Book. Bank of America (BAC) is among the companies due to report their quarterly results before the opening bell.

U.S. stocks finished at more-than-three-week highs overnight as investors cheered upbeat earnings results from the likes of JPMorgan Chase, UnitedHealth, Citigroup and Johnson & Johnson.

The Dow Jones Industrial Average rose 0.9 percent, the tech-heavy Nasdaq Composite climbed 1.2 percent and the S&P 500 added 1 percent.

European markets advanced on Tuesday as the prospects of a Brexit deal with the EU appeared to be promising and the U.S. corporate earnings reporting season kicked off on an upbeat note.

The pan European Stoxx 600 gained 1.1 percent. The German DAX rallied 1.2 percent and France's CAC 40 index surged 1.1 percent while the U.K.'s FTSE 100 finished marginally lower.

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