Investing.com — European stock markets are expected to open higher Wednesday, as investors attempt to recoup recent losses while digesting more quarterly corporate earnings.
At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.6% higher, CAC 40 futures in France climbed 0.8% and the FTSE 100 futures contract in the U.K. rose 0.5%.
The main European indices closed lower on Tuesday, with Germany’s DAX dropping over 1%, weighed by weakness in the banking sector as well as disappointing trade data from China, a major export market for many of Europe’s largest companies.
The tone is more constructive Wednesday, although gains are likely to be constrained by the release of disappointing inflation data out of China, suggesting the world’s second-largest economy is still struggling after a dismal second quarter.
China’s consumer price index fell 0.3% in the 12 months to July, the first annual contraction in CPI since September 2021, while the producer price index shrank 4.4% in the same month.
Back in Europe, the banking sector will remain in focus after the previous session’s sharp losses in the wake of the surprise announcement by the Italian government of a 40% windfall tax on its lenders.
The Italian authorities clarified the situation late Tuesday by stating that the new tax could not breach 0.1% of a lender's total assets, but investors will still be on guard for similar moves in other countries.
The earnings season continues Wednesday, with numbers scheduled from Dutch supermarket chain Ahold Delhaize (AS:AD) and Germany-based E.ON (ETR:EONGn), Europe's largest energy company.
Across the pond, a lot of attention will be on the numbers from Walt Disney (NYSE:DIS), with investors listening for any updates
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