European markets set to open higher ahead of Fed’s decision

European markets are expected to open higher Wednesday ahead of the latest monetary policy decision from the U.S. Federal Reserve.

London’s FTSE is seen 34 points higher at 5,987, Germany’s DAX is seen opening up 56 points at 10,851,  France’s CAC 40 is seen 32 points higher at 4,595 and  Italy’s FTSE MIB is expected to open 76 points higher at 17,603, according to IG.

Global markets are awaiting the outcome of the Fed’s two-day policy meeting that concludes Wednesday, although no action is expected from the central bank.

Nonetheless, U.S. stock futures rose in overnight trading, and stocks in Asia Pacific rose Wednesday in anticipation of guidance from the Fed on the future path of interest rates, with a gradual reopening of the economy in sight following the coronavirus pandemic. The Fed’s monetary policy decision is due at 2 p.m. ET.

Oil markets are also in focus for investors after prices jumped on Wednesday afternoon during Asian trading hours, with international benchmark Brent crude futures 4.35% higher at $21.35 a barrel. U.S. crude futures also gained 14.75% to $14.16 a barrel.

It’s a busy day for earnings in Europe with Airbus, Deutsche Bank, Barclays, GSK, Standard Chartered and Volkswagen all due to report Wednesday. Final euro zone consumer confidence data for April is also expected.

On the data front, Sweden reports consumer and manufacturing confidence figures for April — which should be interesting — given that the country has not introduced a full lockdown amid the coronavirus pandemic, unlike its European neighbors.

Source Article

Next Post

UK small firms use furlough scheme to avoid permanent job cuts: BCC

LONDON (Reuters) – Three of every four small British businesses have temporarily laid off staff using an emergency government scheme to pay their wages, minimising permanent job losses during the coronavirus lockdown so far, a survey published on Wednesday showed. The British Chambers of Commerce said 76% of member firms […]