European stocks are poised for a cautious open Wednesday as investors digest another round of major corporate earnings reports, while uncertainty abounds over progress on a new U.S. coronavirus relief bill.
Britain’s FTSE 100 is seen around 11 points higher at 6,047, Germany’s DAX is set to climb by around 44 points to 12,645 and France’s CAC 40 is expected to edge around 9 points higher to 4,899, according to IG data.
Corporate earnings continue to be a major focus for European investors, with Commerzbank, BMW, Deutsche Post and Allianz among those reporting before the bell on Wednesday.
European markets look set for a mixed handover from Asia Pacific, where South Korea’s Kospi jumped more than 1.1% by afternoon trade to lead gains amid a flat session.
Investors also have an eye on negotiations in Washington over a new U.S. coronavirus aid package, where White House negotiators on Tuesday vowed to work “around the clock” with Democratic counterparts to get a deal over the line by the end of the week.
Gold has continued to surge to record highs during Asian trading hours, and spot gold was changing hands at around $2,024 per troy ounce around an hour before the European open.
July’s final Markit composite and services PMI (purchasing managers’ index) readings for the euro zone are expected at 9 a.m. London time and will offer further insight into the state of the bloc’s economic recovery. A sharper-than-expected gain in the manufacturing PMI at the start of the week helped stocks close out Monday’s session on the front foot. June’s retail sales for the euro zone are also due at 10 a.m.