European Shares Set For Positive Open

stockmarkets jan22 16dec20 lt

European stocks are set to open higher on Wednesday, with optimism over vaccination rollouts and potential U.S. government stimulus likely to underpin sentiment.

Moderna's vaccine could be administered to the public as early as next week and if there is a favorable recommendation, it will become the second shot after Pfizer to be greenlighted in America.

Asian stocks followed their U.S. peers higher after U.S. congressional leaders reported substantial progress in spending and stimulus talks.

The dollar index is seeing a range-bound move while gold edged higher ahead of the Federal Reserve decision, with investors looking for fresh guidance on its continued asset purchases.

The British pound held on to more than 1 percent of gains made on Tuesday after reports that an elusive Brexit trade deal may now be close.

Oil prices slipped in Asian trade after data showed a surprise gain in crude oil inventories in the United States.

Consumer and producer price data from the U.K. and flash Purchasing Managers' survey results from euro area are due later in the session, headlining a busy day for the European economic news.

Across the Atlantic, the Federal Reserve's monetary policy announcement along with reports on retail sales, homebuilder confidence and business inventories may sway sentiment.

U.S. stocks rose overnight as positive industrial production data, the rollout of Covid-19 vaccines and signs of progress in stimulus talks helped investors look past tightening lockdowns.

The S&P 500 climbed 1.3 percent to snap a four-day losing streak and the tech-heavy Nasdaq Composite surged 1.3 percent to hit a fresh record closing high, while the Dow Jones Industrial Average rose 1.1 percent.

European stocks finished mostly higher on Tuesday as optimism over a post-Brexit trade deal offset concerns about rising Covid-19 cases and tighter restrictions.

The pan European Stoxx 600 gained 0.3 percent. The German DAX rallied 1.1 percent and France's CAC 40 index inched up 0.1 percent while the U.K.'s FTSE 100 eased 0.3 percent.

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