This is CNBC’s live blog covering European markets.
European markets are set to open lower on Wednesday, as investors react to a historic policy reform in Germany and developments on a ceasefire in Ukraine, and await key monetary policy updates.
London’s FTSE 100 is expected to be little changed at the open, according to IG, while the French CAC 40 is expected to shed 0.2% and the German DAX is slated to open around 0.5% lower.
That comes after German lawmakers voted on Tuesday to reform the country’s so-called debt brake rule, which will allow a greater national spend on defense and permit the creation of a 500 billion euro ($546 billion) climate and infrastructure fund.
A downward move in the DAX — home to Germany’s biggest companies — would end three consecutive days of gains for the index, which has added 17.4% since the beginning of the year.
European markets closed higher on Tuesday in the wake of Germany’s debt reform vote.
Traders are also reacting to news that U.S. President Donald Trump and Russian leader Vladimir Putin agreed on Tuesday to taking steps toward a ceasefire in Ukraine.
Global investors are also awaiting the latest monetary policy updates from the U.S. Federal Reserve and the Bank of England.
The Fed is not expected to make any changes to its key interest rate when it meets on Wednesday.
The Bank of England, whose Monetary Policy Committee will convene on Thursday, is also widely expected to hold it key interest rate steady at 4.5%, amid signs of a slowdown in the U.K. economy.
Across the Atlantic, stock futures edged higher Wednesday morning as traders awaited the update from the Fed. That came after U.S. stocks saw a widespread selloff in Tuesday’s session.
Overnight in Asia, markets traded mixed following Tuesday’s Wall Street sell-off.
Opening calls
London’s FTSE 100 and the French CAC 40 are expected to be little changed at the open, according to IG, while the German DAX is slated to open 0.2% lower.
A downward move in the DAX — home to Germany’s biggest companies — would end three consecutive days of gains for the index, which has added 17.4% since the beginning of the year.
— Chloe Taylor
