European Shares Seen Up As Investors Shrug Off Chinese Data

European stocks may open higher on Wednesday, tracking a rise in U.S. stock futures after Facebook delivered mixed earnings results for the third quarter and eBay’s quarterly profit topped forecasts.

Asian stock markets pulled away from 20-month lows despite the latest PMI numbers from China confirming a broad-based decline in economic activity.

China’s official manufacturing PMI fell to 50.2 in October, the lowest since July 2016 and down from 50.8 in September, in a sign of further loss of momentum in the world’s second-largest economy.

The services PMI dropped from 54.9 to 53.9, marking the weakest pace of expansion since August 2017.

On the heels of the disappointing data, the People’s Bank of China weakened the yuan fix to the lowest in more than a decade.

The yen traded in the lower 113 zone against the dollar after the Bank of Japan left interest rates steady and cut its inflation forecasts.

Oil rose for the first time in three days but remained on track to post its biggest monthly decline since 2016 on worries about global oversupply.

The Bank of England’s monetary policy decision is due on Thursday while Friday’s U.S. jobs report before the November midterm elections may show improved hiring.

Payroll processor ADP is scheduled to release its report on U.S. private sector employment for October later in the day.

Overnight, U.S. stocks ended sharply higher despite a spate of mixed earnings results and economic reports. The Dow rallied 1.8 percent, while the Nasdaq Composite and the S&P 500 gained around 1.6 percent.

European markets ended Tuesday’s session mixed amid heightened trade tensions between the U.S. and China.

The pan-European Stoxx Europe 600 index ended little changed with a positive bias. The German DAX shed 0.4 percent and France’s CAC 40 index slipped 0.2 percent while the U.K.’s FTSE 100 inched up 0.1 percent.