By Peter Nurse
Investing.com – European stock markets are expected to open largely unchanged Wednesday, as investors digest continued weakness in Asian markets on China’s regulatory crackdown, more corporate earnings and the outcome of the latest Federal Reserve meeting.
At 2:05 AM ET (0605 GMT), the contract in Germany traded 0.1% lower, the contract in the U.K. fell 0.1%, while the in France rose 0.2%.
Asian markets weakened Wednesday, falling for a third straight session and hitting sentiment in Europe, as investors continued to fret about the regulatory crackdowns by the Chinese authorities.
That said, losses were more subdued as China’s state-run financial media tried to calm the issue and with investors reluctant to take large positions ahead of the conclusion of the latest from the U.S. Federal Reserve.
The Fed is widely expected to maintain interest rates at record lows and investors will search for clues as to when the central bank will start reducing its purchases of government bonds and any fresh insight into its views on inflation and economic growth.
Turning to corporate news, Deutsche Bank (DE:) is likely to be in the spotlight Wednesday after the German banking giant easily beat profit expectations for the second quarter even with a drop in revenue at its important investment banking division.
The tech sector will also be in focus after Google parent Alphabet (NASDAQ:), Microsoft (NASDAQ:), and Apple (NASDAQ:) all reported strong quarterly earnings after the close on Wall Street Tuesday.
In economic news, the fell to -0.3 in August, unchanged from the previous month but below expectations as the rising Covid cases weighed on sentiment.
Elsewhere, oil prices rose Wednesday, boosted by an industry report which showed a decline in stocks, suggesting healthy demand in the world’s largest consumer.
U.S. crude oil supply data released on Tuesday by the showed a draw of 4.7 million barrels for the week ended July 23, after a build of 806,000 barrels the previous week.
Investors now await official numbers data from the later in the day to see if this fall is confirmed.
At 2:05 AM ET, U.S. crude futures traded 0.7% higher at $72.12 a barrel, while the contract rose 0.5% to $73.86.
Additionally, rose 0.4% to $1,806.05/oz, while traded largely unchanged at 1.1816.
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