Fears over global growth dominate sentiment

LONDON – European stocks are expected to open lower on Wednesday as global markets remain mixed, with fears persisting over the global growth outlook.

The UK’s FTSE index is seen opening 10 points lower at 7,374, Germany’s DAX 102 points lower at 13,664, France’s CAC 40 down 42 points at 6,374 and Italy’s FTSE MIB 76 points lower at 23,232, according to data from IG.

It’s a busy day for earnings in Europe on Wednesday with several banks reporting this morning.

Credit Suisse reported a net loss for the first quarter of 2022 and announced a management reshuffle, as the Swiss lender struggles with litigation costs and the fallout from the Russia-Ukraine war. Meanwhile, Deutsche Bank reported a net profit of 1.06 billion euros ($ 1.13 billion) for the first quarter of the year.

The lower open expected in Europe comes amid mixed trade elsewhere. US stock futures were mixed on Tuesday night after the major averages continued their April sell-off amid concerns of an economic slowdown, and Wall Street considered earnings that came in after the bell.

Shares in Asia-Pacific were mixed in Wednesday trade as investors reacted to the losses on Wall Street.

Stock picks and investing trends from CNBC Pro:

Heightened tensions over the Russia-Ukraine war persist. On Monday, Russia said that the threat of a nuclear war is very significant, with Foreign Minister Sergey Lavrov stressing the risks should not be underestimated. US Defense Secretary Lloyd Austin responded by calling the nuclear war rhetoric “very dangerous and unhelpful.”

Other earnings are due from Puma, ST Micro, GSK, Persimmon and WPP. On the data front, French and German consumer confidence figures are due for April and May, respectively.

Leave a Reply

Your email address will not be published. Required fields are marked *