Europe shares are expected to open higher on Wednesday despite investor concerns over declining oil prices and the political uncertainty posed by elections in Greece later in the month.
The FTSE is seen higher by 14 points at 6,380, the DAX up 19 points at 9,488 and the French CAC up 12 points at 4,095.
European shares are expected to follow the trend set by Asian equity markets on Wednesday, despite disappointing data from the euro zone on Tuesday that showed services and manufacturing activity in the region was weaker than initially expected.
On Wednesday, markets are awaiting more indications on the state of economic health in the region as euro zone inflation and unemployment figures will be published at 10:00 a.m. GMT.
Markets are still jittery on the prospect of Greek elections at the end of January, in which an anti-European party could win. Adding to recent speculation that Germany is ready for Greece to leave the euro zone, tabloid newspaper Bild reported on Tuesday that Germany was planning for this possibility, citing unnamed government sources.
German Chancellor Angela Merkel is visiting London on Wednesday to meet Prime Minister David Cameron where she is expected to concede little ground to Cameron who wants to curb EU migration, Reuters reported.
Meanwhile in the commodity markets, oil remains the dominant worry with prices near more-than-five-year lows on the supply glut and lack of demand. Brent crude futures were trading at $50.82 a barrel early Wednesday morning, down 15 cents from their previous close, and U.S. futures remained under $48 at $47.97 per barrel.
Investors will be watching for the U.S. ADP employment figures for December due later Wednesday, which give a good indication of employment in the private sector.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.