European stocks are likely to open on a positive note Wednesday despite Wall Street breaking a six-day winning streak overnight.
Underlying sentiment may remain supported somewhat amid signs of falling coronavirus infections, optimism over central U.S. central bank support and growing expectations the U.S. stimulus package will be approved in Congress.
Asian markets remain mostly higher, though the upside was capped by valuation concerns and amid caution ahead of Lunar New Year public holidays.
Chinese and Hong Kong markets led regional gains despite mixed inflation readings.
China’s consumer price inflation unexpectedly fell an annual 0.3 percent in January, while the country’s factory gate prices rose for the first time in 12 months and at the fastest rate since May 2019, separate reports showed earlier today.
Gold prices edged up as the U.S. dollar hovered around a one-week low on expectations of a massive stimulus package.
Oil eased after seven straight days of gains while Bitcoin pulled back after moving closer to $50,000 for the first time on Tuesday.
Final consumer price data from Germany, industrial production figures from France, the EIA crude oil inventory report along with a report on U.S. consumer price inflation as well as remarks by Federal Reserve Chair Jerome Powell will be in focus later today.
U.S. stocks ended on a lackluster note overnight as investors kept an eye on stimulus negotiations and impeachment proceedings.
The Dow Jones Industrial Average edged down marginally and the S&P 500 slipped 0.1 percent after closing higher for six consecutive sessions. The tech-heavy Nasdaq Composite inched up 0.1 percent to a fresh record closing high.
European stocks ended mostly lower on Tuesday, halting a recent rally on optimism about a swifter economic recovery.
The pan European Stoxx 600 ended flat with a negative bias. The German DAX dropped 0.3 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 both inched up 0.1 percent.
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