European markets are set to open mildly higher on Wednesday’s open, as investors kept abreast of political news going on around the globe.
The FTSE 100 is seen 1 point higher at 7,504, the CAC is expected to open up 6 points at 5,482, while the DAX is poised to start on a positive note, up 25 points at 12,399, according to IG.
Stock markets in Europe are likely to get a boost, following on from a mostly positive trading session seen in the Asia-Pacific region. Even though markets remain cautious over the future of U.S. and China relations, in light of a tit-for-tat trade war, stocks in Asia were mostly higher Wednesday.
In the latest surrounding trade, President Donald Trump defended his administration’s stance on trade and the recent disagreements it has had, telling international leaders that the States would no longer tolerate abuse when it comes to trade, but act in its “national interest” when it feels conned.
Earlier this week, China and the U.S. saw a fresh round of tariffs kick in for both sides, as the two major economies failed to meet eye to eye over trade.
And it’s not only China who is clashing with America. On Tuesday, Trade Representative Robert Lighthizer said that the States was prepared to move forward with Mexico on a new NAFTA-style deal, with or without Canada’s involvement. This statement comes ahead of the deadline for Canada and the U.S. to secure a deal.
Meanwhile, Brexit continues to keep European markets busy. On Tuesday, U.K. Prime Minister Theresa May indicated that she would prefer to go ahead with a no-deal Brexit, than the current offer that has been proposed by the European Union, according to Reuters.
On the same day, the British leader added that it wouldn’t be in the national interest of the U.K. to put forward another general election during exit negotiations, the news outlet reported. This comes as May faces more and more pressure over the future of divorce negotiations between the European Union and the U.K.
Overseas, the Federal Open Market Committee will see the second and final day of its September monetary policy meeting today, with analysts expecting the central bank to announce a quarter point rate hike when it concludes its meeting after the European market close.
In corporate news, AA and Boohoo Group are scheduled to release fresh financial updates.
No major economic data is due out Wednesday.
Source: CNBC
