European markets slide, giving up gains made earlier this week; Stoxx 600 down 1.7%

LONDON — European stocks are expected to open in negative territory on Wednesday, giving up gains made in the previous session amid more positive global sentiment.

The U.K.’s FTSE index is expected to open 45 points lower at 7,103, Germany’s DAX 112 points lower at 13,180, France’s CAC 40 down 56 points at 5,906, and Italy’s FTSE MIB 174 points lower at 21,763, according to data from IG.

The lower open in Europe comes as global market sentiment shifts to a more negative setting. Overnight, shares in the Asia-Pacific region mostly traded lower as economic fears continue to weigh on the market.

Oil futures declined more than 3% in Asia trade, with international benchmark Brent crude futures slipping 3.27% to $110.90 per barrel. U.S. crude futures also dropped by 3.57% to $105.61 per barrel.

Reuters reported that U.S. President Joe Biden plans to call for a suspension of the 18.4-cents a gallon federal tax on gasoline in a bid to bring down soaring energy costs.

U.S. stock index futures also fell early Wednesday, giving up gains made by the major averages in regular trading hours as they attempted to claw back some losses following weeks of selling.

Fed Chair Jerome Powell will appear before Congress on Wednesday, kicking off two days of testimony. Investors will be listening for further clues on the trajectory of interest rate hikes after the central bank hiked rates by three-quarters of a percentage point last week — the Fed’s largest rate increase since 1994.

On the data front in Europe, the U.K. inflation rate for May is set to be published today, acting as another gauge of price rises in Europe.

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