LONDON — European stocks are expected to open higher on Wednesday as investors continue to monitor the latest developments in the Russia-Ukraine crisis.
The U.K.’s FTSE index is seen opening 5 points higher at 7,499, Germany’s DAX 82 points higher at 14,743, France’s CAC 40 up 27 points at 6,804 and Italy’s FTSE MIB up 122 points at 26,131, according to data from IG.
Global markets were rattled by events in Europe this week after Russian President Vladimir Putin ordered troops into two breakaway regions of eastern Ukraine. The move came after he announced Monday evening that he would recognize their independence.
The EU and U.K. announced sanctions on Russia earlier Tuesday and the U.S. followed later in the day with President Joe Biden announcing a first tranche of sanctions against the country, targeting Russian banks, the country’s sovereign debt and three individuals.
U.S. stock market futures were modestly higher in overnight trading Tuesday after the S&P 500 closed in correction territory amid escalating tensions between Russia and Ukraine.
However, analysts say the outlook for Federal Reserve rate hikes after March may become less clear if Russia continues its incursion into Ukraine. U.S. Treasury yields retreated as Ukraine-Russia tensions rose, and the yield on the benchmark U.S. 10-year Treasury fell below 2% as investors seek out safe-haven assets.
Earnings come from Barclays, Wolters Kluwer, Rio Tinto, Uniper, Danone, Henkel and Aston Martin Lagonda. Data releases include the latest GfK consumer sentiment index from Germany.
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– CNBC’s Pippa Stevens contributed to this market report.
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