Liverpool Street train station beneath the new skyline of skyscrapers in the City of London financial district on 14th February 2022 in London, United Kingdom.
Mike Kemp | In Pictures | Getty Images
LONDON — European stocks are expected to open higher Wednesday as concerns over the political outlook in France subside.
The U.K.’s FTSE index is seen opening 28 points higher at 8,162, Germany’s DAX up 43 points at 18,268, France’s CAC 40 up 20 points at 7,508 and Italy’s FTSE MIB up 47 points at 34,052, according to data from IG.
European stocks closed lower on Tuesday as investors in the region weighed up political uncertainty in France after Sunday’s election result in which the left-wing New Popular Front (NFP) won the largest number of seats but failed to win an absolute majority. The NFP is demanding that President Emmanuel Macron allow it to form a government, and to pick one of its candidates as France’s next prime minister.
France’s CAC 40 index closed 1.81% lower Tuesday as traders assessed the implications of a hung parliament and a period of political uncertainty in France.
Asia-Pacific markets were mixed overnight, even as key Wall Street benchmarks rose following dovish comments from U.S. Federal Reserve Chairman Jerome Powell Tuesday. Powell cautioned that keeping rates elevated for too long “could unduly weaken economic activity and employment.”
U.S. stock futures were little changed in overnight trading Tuesday after the S&P 500 notched a fresh record close.
Earnings come from Wetherspoons and the National Grid. There are no major data releases.