European stocks are expected to open lower on Wednesday despite a rally in markets in the U.S. and Asia.
The London UKX is expected to open 23 points lower at 6,657, the German DAX down 18 points at 9,946 and the French CAC down 3 points at 4,328, according to IG.
European markets look set to open lower despite a global rally. Asia markets advanced on Wednesday, extending a global rally that pushed major U.S. indexes to records amid expectations of further easing from Japan and the resolution of some concerns over the U.K's. political scene.
Theresa May, who is currently home secretary, is set to be installed as prime minister by Wednesday evening, replacing David Cameron who resigned after the Brexit vote last month. It remains unclear when the May will trigger Article 50, which initiates the withdrawal process from the EU; she has signaled that it could be later this year or even in 2017.
In other news, China has slammed the ruling by the Permanent Court of Arbitration in The Hague that denies China's territorial claims in the South China Sea. Beijing's Ambassador to the U.S Cui Tiankai said the ruling will 'intensify conflict.'
Meanwhile, finance ministers of the European Union (EU) backed sanctions on Spain and Portugal on Tuesday for breaching European rules on budget deficit targets.
Today earnings reports are expected form JD Wetherspoon, Burberry Group and Barratt Developments.
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