European Shares Set For Steady Start After China Data

european market 021219 13oct21 lt

European stocks are seen opening flat to slightly higher on Wednesday after data showed China's exports rose unexpectedly in September, despite a nationwide power crunch that forced factories to cut production.

Exports grew an annual 28.1 percent in the month to reach a new monthly record high, while import growth slowed to 17.6 percent, leaving a trade surplus of $66.8 billion.

Asian markets traded mixed as investors continued to monitor the debt woes of China Evergrande Group.

The dollar eased back from a one-year high versus major peers as investors awaited a report on consumer price inflation as well as the minutes of the latest Federal Reserve meeting for clues on when the Federal Reserve will taper stimulus and raise interest rates.

Three Fed officials including Vice Chair Richard Clarida said overnight that the U.S. economy has healed enough to begin to scale back the central bank's asset-purchase program.

Gold was little changed and oil held above $ 80 a barrel after a four-day advance while Bitcoin pared its recent rally and traded around $56,300.

U.S. earnings news will be in focus later today, with financial giant JPMorgan Chase due to report its third quarter results before the opening bell.

Bank of America, Citigroup, Morgan Stanley, Wells Fargo and Goldman Sachs are due to report their quarterly results in the coming days.

U.S. stocks ended lower for the third consecutive session overnight as investors waited to see how companies are coping with price increases.

A downward revision in global growth forecast by the IMF and expectations that the Fed could begin scaling back asset purchases as early as next month also weighed on markets.

The Dow dipped 0.3 percent, the tech-heavy Composite slipped 0.1 percent and the S&P 500 eased 0.2 percent.

European stocks ended Tuesday's session on a subdued note amid rising concerns over inflation, pressures on quarterly earnings and Chinese real estate giant Evergrande's debt woes.

The pan European Stoxx 600 ended flat with a negative bias. The German DAX and France's CAC 40 index both dipped 0.3 percent while the U.K.'s FTSE 100 shed 0.2 percent.

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