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Sentiment was muted among European markets Wednesday as positive sentiment wavered in the region, spurred on by volatility in China.
The pan-European Stoxx 600 index opened just 0.06% higher but strengthened slightly to trade up 0.14%.
Regional markets traded and closed lower Tuesday, with all major bourses and the majority of sectors trading in the red during the day. The lackluster session came after a shaky start to the week, with investors responding to a slowdown in China's stimulus rally.
Chinese stocks sold off in another volatile day of trading amid mixed Asia-Pacific markets overnight with the mainland CSI 300 dropping 6%, and Hong Kong's Hang Seng index extending its losses, falling 2.5%. On Tuesday, the HSI recorded its worst day in 16 years, closing 9.41% lower.
U.S. stock futures hovered near the flatline Tuesday night after a winning session for the major averages. Wall Street is coming off a strong session for the major averages Tuesday as tech stocks outperformed, and oil prices eased off their highs.
Events to watch out for in Europe today include the German government's latest economic forecasts and the latest meeting of NATO defense ministers in Belgium.
— CNBC's Sarah Min and Lim Hui Jie contributed reporting to this market report.
Rio Tinto shares fall on acquisition plan
U.K.-listed shares of Rio Tinto fell 0.6% lower after the Australian miner said it would acquire U.S. lithium producer Arcadium Lithium for $6.7 billion.
Rio Tinto and Arcadium Lithium's share performance over the last six months
Oil and gas stocks rally as crude prices rise
The sun sets behind a crude oil pump jack on a drill pad in the Permian Basin in Loving County, Texas, U.S. November 24, 2019.
Angus Mordant | Reuters
Oil and gas sector stocks on the Stoxx 600 index rallied to trade 0.15% higher, after initially opening 0.2% down.
Oil prices steadied on Wednesday, as traders weighed up developments in the hydrocarbon-rich Middle East and potential Israeli attacks on Iran's oil infrastructure, amid a background of weaker global demand and ample supply.
Data reported by Reuters showed U.S. crude oil stocks rose by nearly 11 million barrels last week, much more than analysts polled by the news agency had expected, according to market sources citing American Petroleum Institute figures on Tuesday.
Brent crude futures rose 53 cents, or 0.67%, to $77.70 a barrel by 9 a.m. London time. U.S. West Texas Intermediate futures rose 42 cents to $73.98 a barrel.
— Holly Ellyatt
European markets open flat
The pan-European Stoxx 600 index opened flat, up by a marginal 0.06%.
Sentiment brightened in early trades with banks, household goods, insurance, technology and travel and leisure as the only sectors in negative territory.
The FTSE 100 was the only major European index to be trading in positive territory on open, up 0.5%, with France's CAC 40, Germany's Xetra DAX and Italy's FTSEMIB all in red.
— Holly Ellyatt
Boston Fed's Collins sees more rate cuts ahead
Boston Federal Reserve President Susan Collins said Tuesday she expects more interest rate cuts ahead as inflation eases and the labor market cools.
"My confidence in the disinflation trajectory has increased – but so have the risks of the economy slowing beyond what is needed to restore price stability," Collins said in a speech to bankers in Boston. "Further adjustments of policy will likely be needed."
The central bank official noted that the Fed's "dot plot" after its September meeting pointed to an additional 50 basis points, or half percentage point, in reductions before the end of the year, though she did not specify whether she agrees with the consensus.
—Jeff Cox
Trade deficit fell more than expected in August
The U.S. trade deficit fell more than 10% in August as exports surged, imports declined and the shortfall with China shrunk.
The goods and services imbalance totaled $70.4 billion for the month, down 10.8% from the upwardly revised $78.9 deficit in July, the Commerce Department reported Tuesday. Economists surveyed by Dow Jones were looking for $70.8 billion.
That came as exports rose $5.3 billion, or 2%, and imports declined by $3.2 billion, or 0.9%. However, the year to date trade deficit is still 8.9% higher than the same period a year ago.
—Jeff Cox
Oil is selling off after surging on Middle East war fears
Smoke clouds erupt during an Israeli airstrike on Khiam in southern Lebanon near the border with Israel on October 2, 2024.
- | Afp | Getty Images
Crude oil futures were down nearly 3% in morning trading as fears of imminent retaliation by Israel against Iran have eased somewhat.
U.S. crude oil was down $2.25, or 2.92%, to $74.89 per barrel at around 9:17 a.m. ET. Global benchmark Brent had fallen $2.26, or 2.79%, to $78.67 per barrel.
Oil prices surged 13% through Monday's close since Iran launched about 180 ballistic missiles at Israel last week. Iran's attack had raised fears that Israel might retaliate by hitting the country's oil industry. President Joe Biden, however, has publicly discouraged Israel from taking this course.
The market was also disappointed that Chinese officials did not announce new stimulus at a press briefing Tuesday. Prior to the escalation in the Middle East, the oil market was swept by bearish sentiment on soft demand in China and worries that crude supplies will outpace global demand next year.
— Spencer Kimball
European markets: Here are the opening calls
European markets are expected to open in mixed territory Wednesday.
The U.K.'s FTSE 100 index is expected to open 6 points higher at 8,199, Germany's DAX up 7 points at 19,066, France's CAC unchanged at 7,521 and Italy's FTSE MIB down 61 points at 33,585, according to data from IG.
Data releases to watch out for in Europe today include the German government's latest economic forecasts. There are no major earnings releases.
— Holly Ellyatt
English (US) ·