European stocks are likely to open higher on Wednesday as investors await an interest rate decision from the U.S. Federal Reserve.
The FTSE 100 is seen around 7 points higher at 7,654, the DAX is set to climb around 20 points to 12,167 and the CAC 40 is expected to open around 4 points higher at 5,515.
The Fed is scheduled widely expected to cut interest rates by a quarter point for the first time since the financial crisis over a decade ago, and the expected easing has supported risk asset prices worldwide.
European stocks closed sharply lower on Tuesday however, after U.S. President Donald Trump took to Twitter to threaten “no deal at all” with China if it seeks to wait out his first term to finalize any trade deal.
U.S. negotiators are meeting with Chinese representatives in Shanghai for the first time since a truce was agreed between President Trump and Chinese President Xi Jinping in May.
Asian stocks also slipped on renewed trade fears. led by Hong Kong’s Hang Seng index, which fell 1.11% as all major indexes closed in the red.
Back in Europe, Britain’s new Prime Minister Boris Johnson heads to Northern Ireland on Wednesday as part of a nationwide tour to sell his plan to pull the U.K. out of the European Union with or without a deal. The border between Northern Ireland and the Republic of Ireland is the U.K.’s only land border with the EU, and a key point of disagreement in the current divorce deal.
Earnings in focus
Earnings remain in focus for major European corporates. Credit Suisse reported a net income of 937 million Swiss Francs ($945 million) for the second-quarter of this year, beating expectations.
BNP Paribas posted a net profit for the quarter of 2.47 billion euros ($2.76 billion), also beating expectations on the back of strong growth in its corporate and investment banking unit.
Source: CNBC
