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European Stocks Likely To Open On Mixed Note

stockmarkets dec24 16sep20 lt

European stocks are likely turn in a mixed performance on Wednesday, with investors looking ahead to the Federal Reserve's monetary policy announcement, due later in the day.

Sluggish European futures and slightly higher U.S. futures too indicate a somewhat subdued start for most of the markets across Europe.

With the Bank of England and the Bank of Japan's policy announcements due on Thursday, the mood in the markets is likely to remain largely cautious.

Activity may well remain stock specific with earnings reports and other corporate announcements providing some direction.

In commodities, West Texas Intermediate Crude oil futures for October are gaining $0.68 or about 1.8% at $38.96 a barrel as worries about production stoppages in the Gulf of Mexico region due to Hurricane Sally outweigh concerns about outlook for energy demand.

In another light day for economic news from Europe, the Office for National Statistics is scheduled to release a report on UK consumer and producer prices for August at 2.00 am ET.

Economists forecast UK output prices to fall 0.7% annually, following a 0.9% decline a month earlier. Inflation is forecast to ease to 0.1% in August, from 1% in July.

At 3.00 am ET, the Czech Statistical Office issues producer prices for August. Prices are expected to drop 0.1% on year.

At 4.30 am ET, the Office for National Statistics will release UK house price data for June, and at 5.00 am ET, Eurostat will release Eurozone external trade data for July. The euro area trade surplus is seen at EUR 12.6 billion versus EUR 21.2 billion in June.

European markets ended on a firm note on Tuesday, buoyed by upbeat industrial production and retail data from China, and data showing a notable improvement in German business sentiment.

The pan European Stoxx 600 moved up 0.66%. The U.K.'s FTSE 100 surged up 1.32%, Germany's DAX edged up 0.18% and France's CAC 40 advanced 0.32%, while Switzerland's SMI ended 0.6% up on Tuesday.

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