European Markets Seen Rising On Wednesday

(RTTNews) - A strong positive sentiment is expected to prevail in European stock markets on Wednesday amidst a sharp decline in Fed rate hike expectations. The decline in crude oil prices, the easing in bond yields and the dollar's retreat are also expected to bolster sentiment. Anxiety ahead of the release of PCE-based inflation readings from the U.S. on Wednesday morning is however expected to limit gains.

Wall Street had closed on a mildly negative note on Tuesday, as crude oil prices and treasury yields remained elevated. The Dow Jones Industrial Average dropped 0.26 percent to finish trading at 51,349.92. The S&P 500 lost 0.17 percent to finish trading at 7,670.84. The tech-heavy Nasdaq Composite shed 0.09 percent to close trading at 26,797.54.

Major European markets had finished trading on a mixed note on Tuesday as an easing in crude oil prices supported sentiment. The pan-European Stoxx-50 rallied 0.38 percent to finish trading at 6,325.25. Germany's DAX added 0.10 percent to end trading at 25,399.21. Switzerland's SMI declined 0.22 percent to close trading at 13,912.19. U.K.'s FTSE 100 plunged 0.45 percent to finish trading at 10,636.71. France's CAC 40 slipped 0.53 percent to close at 8,035.87.

Current indications from the European stock futures indicate a strong positive sentiment. The pan-European Stoxx 50 Futures (Dec) is trading 0.61 percent above the flatline. The DAX Futures (Dec) is trading 0.60 percent above the flatline. The FTSE 100 Futures (Dec) has gained 0.57 percent from the flatline. The CAC 40 Futures (Oct) has rallied 0.43 percent. The SMI Futures (Dec) is also trading 0.06 percent above the flatline.

American stock futures are trading in positive territory. The US 30 (DJIA) is trading 0.41 percent higher, whereas the US500 (S&P 500) is trading 0.22 percent below the flatline.

Asian stock markets are trading on a mostly positive note amidst a decline in crude oil prices as well as bond yields. Japan's Nikkei 225 has jumped 2.2 percent. Australia's S&P ASX 200 has rallied 0.92 percent. DJ New Zealand has gained 0.72 percent. China's Shanghai Composite has added 0.40 percent. Hong Kong's Hang Seng has edged up 0.01 percent. India's Nifty 50 is trading 0.01 percent below the flatline. South Korea's KOSPI has slipped 0.24 percent.

Amidst Fed rate hike expectations falling sharply in the wake of weaker-than-expected labor market data, the U.S. dollar has retreated. The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, is currently trading at 101.28, declining 0.09 percent from 101.37 at the previous close.

The EUR/USD pair has gained 0.07 percent to trade at 1.1350 whereas the GBP/USD pair is trading 0.20 percent higher at 1.3257. The USD/CHF pair has slipped 0.10 percent to trade at 0.8332. The EUR/GBP pair is trading 0.13 percent lower at 0.8563. The EUR/JPY pair has slipped 0.20 percent to 178.04, and the GBP/JPY pair has dropped 0.10 percent to 207.93.

Both the crude oil benchmarks have declined from the previous closing levels. Brent Crude Futures for December settlement is trading at $95.93, around 0.24 percent lower than $96.16 at the previous close. WTI Crude Futures for November settlement is currently trading at $89.30, having slipped 0.09 percent from $89.38 at the previous close.

Gold jumped as rate hike expectations from the Fed dropped amidst weak job market data and dovish comments from a Fed official. Gold futures for December settlement have surged 0.89 percent from the previous closing level of $4,179.70. It is currently trading at $4,217.07.

Among economic data releases due from the region on Wednesday are preliminary inflation readings for September from France and Germany, Retail Sales data for August from Germany, as well as Unemployment report for September from Germany. Markets would also be keenly looking forward to the PCE-based inflation readings for August and the final GDP reading for the second quarter due from the U.S. on Wednesday morning.

Major updates to earnings due from the region on Wednesday include Danieli & C Officine Meccaniche, Spire Healthcare, Gerresheimer, Saga as well as Pinewood Technologies Group.