LONDON, U.K – European shares are seeing higher points on Wednesday as market players wait for economic data.
European stock market is suggesting to open Wednesday trading session slightly higher, as investors wait for the latest batch of economic reports.
The FTSE 100 index is seeing around six points of gains, lifting its value towards 7,164, while the CAC index is expected an increase by 27 points during the trade open, which would raise its value towards 5,754. On the other hand, the DAX index is looking towards a very optimistic start this trading session with an expected 67 points increase, which would lift up its value towards 13,056.
The focus of the stock market is largely on the developments on global trade, following the recent statement from the US President Donald Trump that the initial part of the US-China trade negotiations is not likely to reach an agreement this year. The market was previously boosted with the hopes that the partial agreement will be signed before 2019 ends.
Also, early in the week, President Trump has warned that he is going to enforce new tariffs on French imports following his decision to restore the tariffs on aluminum and steel imports from Brazil and Argentina. The recent move of Washington on tariffs towards their trade partners has dampened the overall sentiments in the market as investors have been hoping that the trade war between two of the largest economies in the world will be resolved before 2020 comes.
President Trump has said during an interview with some reporters in London, as he visits UK for the NATO summit, signing the deal with China doesn’t have any deadline yet.
On the data front, the market is waiting for the fresh batch of economic reports. Italy is poised to publish its recent composite PMI data for November shortly after the trade session starts.
Germany and France are also expected to release their PMI figures for Markit services for November a bit later in the trading session. The Markit services PMI reports for the eurozone for November is also expected to be published at about 9 a.m. in London.
The UK market is also waiting for any updates as several world leaders are meeting in London for the NATO summit as it marks its 70th anniversary.
President Trump is also scheduled for a bilateral meeting with Angela Merkel, the German Chancellor. He is also expected to have a working lunch with the Greece and UK representatives, as well as representatives in several eastern and central European countries after meeting with Merkel.