Borough Market in London, United Kingdom, on Aug. 27, 2024.
Mike Kemp | In Pictures | Getty Images
LONDON — European stocks are expected to open lower on Wednesday as global market sentiment wavered.
The U.K.’s FTSE index is seen opening 0.18% lower, Germany’s DAX 0.6% lower, France’s CAC 40 down 0.56% and Italy’s FTSE MIB 0.56% lower.
Regional bourses traded higher on Tuesday as global markets reacted broadly positively to the outcome of talks between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy and European leaders at the White House on Monday. Defense stocks were among the worst performers in the index, however.
On Wednesday, markets will be reacting to U.K. inflation which came in at a hotter-than-expected 3.8% for the year to July, as well as earnings from Alcon and Geberit, and the latest monetary policy decision from Sweden’s Riksbank.
The British pound rose slightly against the U.S. dollar after the U.K. inflation print was published, gaining around 0.1% to trade at $1.35 by 7:17 a.m. in London (2:17 a.m. ET).
British pound versus U.S. dollar
Globally, Asia-Pacific markets fell overnight, tracking Wall Street declines in Tuesday’s trading session. S&P 500 futures were near flat overnight ahead of the release of the Federal Reserve’s July meeting minutes.
At the time, policymakers once more held steady on interest rates, but Fed Governors Christopher Waller and Michelle Bowman dissented, marking the first time two voting Fed officials have done so since 1993.
Traders are also focusing on key speeches from Fed officials when they convene in Jackson Hole, Wyoming, for the Fed’s annual economic symposium on Thursday. Investors are awaiting clues from Fed Chair Jerome Powell as to what will happen at the central bank’s remaining policy meetings this year.
The Fed funds futures market is indicating an 84.9% chance for a quarter-point rate cut at the Fed’s next policy meeting in September, according to CME’s FedWatch tool.
— CNBC’s Alex Harring contributed to this report.