LONDON — European stocks are set to open in negative territory on Wednesday, giving up gains made in the previous session amid more positive global sentiment.
Britain’s FTSE index is expected to open 45 points lower at 7,103, Germany’s DAX down 112 points at 13,180, France’s CAC 40 down 56 points at 5,906 and Italy’s FTSE MIB down 174 points. at 21,763, according to data from IG.
The lower open in Europe comes as global market sentiment shifts to a more negative framework. Overnight, stocks in the Asia-Pacific region mostly traded lower as economic fears continue to weigh on the market.
Oil futures fell more than 3% in Asian trade, with international benchmark Brent futures slipping 3.27% to $110.90 a barrel. U.S. crude futures also fell 3.57% to $105.61 a barrel.
Reuters reported that US President Joe Biden plans to seek suspension of 18.4 cents per gallon federal gasoline tax in an effort to reduce soaring energy costs.
U.S. stock index futures also fell early on Wednesday, giving up gains made by major averages during normal trading hours as they tried to recoup some losses after weeks of selling.
Fed Chairman Jerome Powell will appear before Congress on Wednesday, kicking off two days of testimony. Investors will be on the lookout for more clues on the path of interest rate hikes after the central bank raised rates by three-quarters of a percentage point last week – the Fed’s biggest rate hike ever. since 1994.
On the data front in Europe, the UK inflation rate for May is expected to be released today, acting as another indicator of rising prices in Europe.
– CNBC’s Abigal Ng contributed to this market report.