European stocks watch for euro zone PMIs and Spain GDP

European stocks are expected to open higher Wednesday ahead of key data releases from the euro zone.

London’s FTSE is seen opening 28 points higher at 5,879, Germany’s DAX up 34 points at 12,674, France’s CAC 40 up 10 points higher at 4,805 and Italy’s FTSE MIB up 148 points at 18,939, according to IG.

European investors will be focused on the latest preliminary euro zone purchasing manager’s index (PMI) data for September. The data is due at 9 a.m. London time and will give an indication of the state of health of the region’s services and manufacturing industries.

Ahead of that data, Spain releases second-quarter gross domestic product (GDP) figures at 8 a.m. London time.

Stocks in Asia-Pacific were mixed in overnight trade as investors reacted to recent comments from Federal Reserve Chairman Jerome Powell on Tuesday. 

In a prepared testimony, Powell said the central bank remains committed to supporting the economy through its tools “for as long as it takes.” He also noted that “many economic indicators show marked improvement,” though the path forward “continues to be highly uncertain.”

Coronavirus developments could also weigh on investor sentiment, with U.K. Prime Minister Boris Johnson on Tuesday reversing the lifting of some lockdown measures in England. That came following a surge in coronavirus cases in the country, with mainland Europe also seeing a sharp rise in infections.

Cases in the U.S. have also started to trend upward following weeks of declines, though some health experts say it’s too early to tell whether the upward trend will continue. The virus has taken more than 200,000 lives in the country.

No major European earnings are released Wednesday.

– staff contributed to this market report.

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