European stocks may open largely unchanged on Wednesday, tracking a mixed trend in Asia as Chinese markets rebounded from sharp losses in the previous session and strong preliminary data from Japan eased global growth worries.
China’s Shanghai Composite index is rising half a percent on optimism for more government support after closing more than 2 percent the previous day. Markets elsewhere across Asia are turning in a mixed performance.
Gold edged down from three-month highs and the dollar index eased after Turkey’s President Recep Tayyip Erdogan said on Tuesday that Saudi journalist Jamal Khashoggi was the victim of a “vicious, violent murder”.
The British pound held firm ahead of British Prime Minister Theresa May’s key address to Conservative Party lawmakers in parliament later in the day.
Oil prices rebounded slightly in Asian trade after falling over 4 percent on Tuesday as Saudi Arabia reassured the markets about supply, saying it would play a ‘responsible role’ in the market.
Flash Purchasing Managers’ survey data from euro area is due later in the session, headlining a busy day for the European economic news.
Across the Atlantic, trading sentiment may be influenced by reaction to reports on new home sales as well as the Federal Reserve’s Beige Book.
In stock-specific action, banking stocks could be in focus after German lender Deutsche Bank AG (DB) reported that its third-quarter net income plunged to 229 million euros from last year’s 649 million euros on weak revenues.
U.S. stocks fell overnight as disappointing quarterly results from some big-name companies added to investor concerns over slowing global growth and mounting geopolitical tensions.
The Dow dropped half a percent, the tech-heavy Nasdaq Composite slid 0.4 percent and the S&P 500 shed 0.6 percent.
European markets ended Tuesday’s session deep in the red after China stocks sold off and the European Commission asked the Italian government to rework its budget.
The pan-European Stoxx Europe 600 index dropped 1.6 percent. The German DAX plunged 2.2 percent, France’s CAC 40 index tumbled 1.7 percent and the U.K.’s FTSE 100 declined 1.2 percent.