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European markets are set to open lower on Wednesday, as investors react to a historic policy reform in Germany and developments on a ceasefire in Ukraine, and await key monetary policy updates.
London's FTSE 100 is expected to be little changed at the open, according to IG, while the French CAC 40 is expected to shed 0.2% and the German DAX is slated to open around 0.5% lower.
That comes after German lawmakers voted on Tuesday to reform the country's so-called debt brake rule, which will allow a greater national spend on defense and permit the creation of a 500 billion euro ($546 billion) climate and infrastructure fund.
A downward move in the DAX — home to Germany's biggest companies — would end three consecutive days of gains for the index, which has added 17.4% since the beginning of the year.
European markets closed higher on Tuesday in the wake of Germany's debt reform vote.
Bank of England expected to keep rates on hold
Andrew Bailey, Governor of the Bank Of England, pauses before the start of the Monetary Policy Report press conference at the Bank Of England on February 6, 2025 in London, England.
Kin Cheung - WPA Pool | Getty Images News | Getty Images
The Bank of England is widely expected to hold interest rates when it meets on Thursday, as the U.K. faces economic headwinds both at home and abroad.
The central bank is highly likely to keep its benchmark interest rate at 4.5% at its March meeting, given the unpredictability of President Donald Trump's trade tariffs and a fledgling global trade war, and how those factors could affect inflation in the U.K.
— Holly Ellyatt
Santander says 750 jobs at risk as it pursues UK branch closures
A sign hangs from a branch of Banco Santander in London, U.K., on Wednesday, Feb. 3, 2010.
Simon Dawson | Bloomberg via Getty Images
The British unit of Spanish lender Santander on Wednesday said 750 of its staff were at risk of redundancy as it targets 95 branch closures in the U.K.
— Ruxandra Iordache
Opening calls
London's FTSE 100 is expected to be little changed at the open, according to IG, while the French CAC 40 is expected to shed 0.2% and the German DAX is slated to open around 0.5% lower.
A downward move in the DAX — home to Germany's biggest companies — would end three consecutive days of gains for the index, which has added 17.4% since the beginning of the year.
— Chloe Taylor
English (US)