European stocks are expected to start Wednesday’s session on a slightly upbeat note, after Wall Street delivered its second best day of 2019 trading overnight.
Ahead of the open, the FTSE 100 pointed to a rise of 4 points at 7,223, while Germany’s DAX popped 13 points at 11,996 and France’s CAC 40 indicated an incline of 9 points, at 5,280, according to IG.
On Wednesday, stocks in the Asia-Pacific region climbed, building upon gains seen in the U.S., where the Dow Jones Industrial Average soared more than 500 points and other stocks finished the session on a high. The uptick in trading came on the back of comments from the Chair of the U.S. Federal Reserve, Jerome Powell, who signaled that the Fed was open to easing monetary policy.
On Tuesday, the Fed Chair stated that the central bank would be keeping an eye on current developments in the economy, and would do what it must do, in order to “sustain the expansion. ” Powell did, however, note that the central bank could not determine when or how global trade issues would be settled.
Meanwhile, trade turmoil continues to shake up market sentiment. During his state visit to the U.K., President Donald Trump doubled down on his recent tariff threat on Mexico, telling reporters that his new policy would “take effect next week. ”
GOP senators have however, indicated that they do not agree with the 5 percent levy on all Mexican imports. Consequently, trade tensions and negotiations are expected to remain a hot topic for the foreseeable future.
Back in Europe, Trump stated Tuesday that the U.S. was “committed to a phenomenal trade deal ” with the U.K., as the British nation gets ready to exit the European Union, adding that there was “tremendous potential” with this.
As Trump concludes his visit on Wednesday, the U.S. leader is expected to travel to France.
Looking at economic data, composite and services PMI figures for the euro area are scheduled for publication this morning.