European markets head for subdued open amid jitters over growth, inflation

  • European stocks are expected to open slightly lower on Wednesday as concerns around global growth and inflation continue to rattle market sentiment.
  • The U.K.'s FTSE index is seen opening 14 points lower at 7,117, Germany's DAX 3 points lower at 15,141, France's CAC 40 down 2 points at 6,541 and Italy's FTSE MIB 43 points lower at 25,621, according to data from IG.

LONDON — European stocks are expected to open slightly lower on Wednesday as concerns around global growth and inflation continue to rattle market sentiment.

The U.K.'s FTSE index is seen opening 14 points lower at 7,117, Germany's DAX 3 points lower at 15,141, France's CAC 40 down 2 points at 6,541 and Italy's FTSE MIB 43 points lower at 25,621, according to data from IG.

The subdued open for European markets comes as global trade remains volatile amid uncertainties over inflation, economic growth and surging energy prices.

U.S. stock futures were muted in overnight trading on Tuesday as investors anticipate the start of earnings season and September's consumer inflation report, which is expected to have flared at the same rapid pace as August. Economists expect to see a rise of 0.3%, or a 5.3% annualized rate, when the consumer price index is released Wednesday at 8:30 a.m. ET.

Investors are also bracing for a slew of U.S. earnings, with major banks releasing third-quarter results this week; JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are all due to report, starting Wednesday.

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In the meantime, global growth concerns remain in the foreground. On Tuesday, the International Monetary Fund said it was now less optimistic about the global economy for 2021, but said in its latest report that it still sees reasonable growth over the medium term. 

In Asia-Pacific markets early Wednesday morning, shares in mainland China were mixed as investors reacted to the release of Chinese trade data for September. The figures showed exports beat expectations but import growth disappointed, according to data released Wednesday by the customs agency.

Energy industry giants will be closely watched later on Wednesday as CNBC's Hadley Gamble moderates a panel with Russian President Vladimir Putin and the CEOs of BP, TotalEnergies, ExxonMobil and Daimler at Russian Energy Week. Watch the event live at 1 p.m. Moscow time/11 a.m. London time on CNBC.com.

Earnings updates from retailer ASOS and food delivery firm Just Eat are due out on Wednesday. Data releases include the latest GDP estimate for the three months to August in the U.K. and final consumer price inflation figures for Germany in September. In addition, the IEA's World Energy Outlook 2021 report was released on Wednesday.

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