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LONDON — European stocks opened broadly higher on Wednesday, reversing negative sentiment in the previous session that was driven by regional fiscal concerns.
The U.K.’s FTSE index is seen opening marginally higher, Germany’s DAX 0.3% higher, France’s CAC 40 up 0.4% and Italy’s FTSE MIB up 0.3%, according to data from IG.
The positive open predicted for regional bourses comes after European stocks tumbled on Tuesday as concerns over the fiscal outlook in major European economies drove bond yields higher.
The U.K.’s 30-year bond yield hit its highest level since 1998 as traders looked ahead to a contentious Autumn Budget. Meanwhile, France’s 30-year yield was at its highest since 2009 ahead of next week’s no confidence vote, which could see the government toppled over a fierce budget dispute.
Bond yields have been rising globally too, it should be noted, amid worries over President Donald Trump’s trade tariffs. U.S. Treasury yields jumped Tuesday after a federal appeals court on Friday ruled that most of his global trade duties are illegal. That raises the prospect of the government having to repay the money already brought in by the duties, putting more pressure on an already stressed U.S. fiscal situation.
Asia-Pacific markets traded mixed overnight as investors assessed the global bond market and the latest developments on the trade front, while U.S. stock futures edged higher after a federal court decision in an Alphabet antitrust case fueled optimism that the tech giants will be able to weather regulatory threats.
In Europe on Wednesday, earnings are set to come from Swiss Life Holding and Helvetia Holding. Data releases include the latest Turkish inflation print.
— CNBC’s Amala Balakrishner and Pia Singh contributed to this market report