RTTNews - European stocks are likely to open lower on Wednesday, pointing to weakness for the third straight day, following weak Asian cues on the back of the U.S. lead amid renewed worries about the balance sheets of U.S. banks and apprehensions that the global market rally may have run ahead of fundamentals.
Investors await the release of a few key economic reports from the U.S., including the August private sector unemployment report from ADP and July factory orders report and the minutes from the last Federal Reserve Open Market Committee meeting.
In Europe, Eurozone's quarterly national accounts and producer prices data are due to be released in the session. Eurozone producer prices are expected to drop 0.6% in July from the prior month.
On Wall Street, the major U.S. averages ended down around 2% each overnight, as traders chose to exit counters on fresh concerns about the health of the U.S. financial sector despite positive economic reports on manufacturing, pending home sales and construction spending.
Crude oil futures tumbled for a second day in a row on Tuesday, as global stocks continued to decline, increasing worries over energy demand. Traders appeared to be looking for major jobs reports and the weekly petroleum inventory data from the U.S. Energy Administration. Light sweet crude for October delivery dropped to $68.05, down $1.91 or 2.73% on the session.
However, in Asian trading on Wednesday, crude oil prices moved higher towards $69 a barrel after data from the American Petroleum Institute showed a sharp fall in U.S. crude stocks.
In corporate news, electrical retailing group DSG International plc is expected to win the backing of some of its biggest shareholders for a salary sacrifice scheme, the Financial Times reported on Tuesday.
German utility RWE is seeking a 2 billion- euro loan to refinance part of an existing 4 billion euro loan, according to the book-runners Bayerische Hypo-und Vereinsbank, Calyon and Royal Bank of Scotland.
Bayerische Motoren Werke AG will invest 1 billion euros to modernize and extend production lines in Germany, Passauer Neue Presse said.
Daimler AG said its sales for the Mercedes-Benz Cars division in the U.S. dropped 10.5 percent to 18.734 units in August. Sports-car maker Porsche SE said its U.S. sales rose 9 percent to 1,526 units in August from the same period last year. Volkswagen AG's U.S. auto sales rose 11.4 percent in August compared with a year ago
Belgium's securities regulator said it has completed a preliminary probe into a statement Fortis NV issued about its solvency plan in June 2008.
Neopost SA, a supplier of mail-room solutions, reported lower Q2 sales but said its full-year sales would grow by about one percent at constant exchange rates.
Hargreaves Lansdown plc said its profit for the year ended June attributable to equity shareholders of parent was £52.12 million, compared to £42.4 million a year ago.
Eaga plc said its profit for the year ended May attributable to equity shareholders was £26.7 million or 10.63 pence per share, compared to £17.95 million or 7.17 pence per share in the last year.
The European markets fell for the second day on Tuesday dragged down by economy sensitive banking stocks, as a mixed batch of economic data heightened investor concerns that the global economic recovery may be weaker than expected.
The FTSEurofirst 300 index of pan-European blue chips closed 1.84% lower, while the narrower DJ Stoxx 50 index fell 2.01%. Around Europe, the U.K.'s FTSE 100 index fell 1.82%, France's CAC 40 index slipped 1.92% and Germany's DAX index dropped 2.51%.
For comments and feedback: contact email@example.com