European stocks are expected to open in mostly flat territory Wednesday, losing some of the positive momentum seen earlier this week.
London’s FTSE is seen opening 5 points higher at 6,042, Germany’s DAX up 9 points at 13,086, France’s CAC 40 up 4 points at 5,016 and Italy’s FTSE MIB up 43 points at 20,039, according to IG.
European stocks look set to follow their Asian counterparts in more lackluster trade Wednesday; stocks in Asia Pacific were lower in afternoon trade despite major indexes on Wall Street notching up new records yet again Tuesday.
U.S. markets were bolstered by China and the U.S. resuming trade talks on Tuesday. In a statement, the Office of the U.S. Trade Representative said that both sides made “progress and are committed to taking the steps necessary to ensure the success of the” phase one trade deal.
The moves stateside came on the back of mixed economic data, however. The U.S. Census on Tuesday reported a 36% surge in sales of newly built homes in July. The Conference Board Consumer Confidence Index, however, fell for a second straight month to 84.8 in August from July’s 91.7.
Investors are looking ahead to the Federal Reserve’s annual symposium on monetary policy Thursday, to be held in a virtual format this year. Wall Street will look for clues on further stimulus and where the economy is headed out of the event. Investors will be looking specifically for Fed Chairman Jerome Powell’s comments on inflation and its impact on the dollar.
There are no major European earnings or data releases Wednesday.
— CNBC.com staff contributed to this market report.