European markets head for mixed open; euro zone inflation data to come

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  • European stocks are expected to open in mixed territory Wednesday, reflecting sentiment in Asia-Pacific and U.S. markets.
  • London's FTSE is seen opening 10 points lower at 6,770, Germany's DAX down 41 points at 14,981,France's CAC 40 down 13 points at 6,079 and Italy's FTSE MIB down 32 points at 24,401, according to IG.

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European stocks are expected to open in mixed territory Wednesday, reflecting sentiment in Asia-Pacific and U.S. markets.

London's FTSE is seen opening 10 points lower at 6,770, Germany's DAX down 41 points at 14,981, France's CAC 40 down 13 points at 6,079 and Italy's FTSE MIB down 32 points at 24,401, according to IG.

Investors in Europe will be watching for the latest inflation data from the euro zone in March and German unemployment data which will both be good indications on the health of the region's economy as several countries extend or reintroduce lockdown measures to contain the spread of the coronavirus.

The mixed open for European markets comes as other markets showed similar lackluster direction overnight.

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Shares in Asia-Pacific traded mixed on Wednesday as official data showed China's factory activity growing in March. The official manufacturing Purchasing Managers' Index (PMI) came in at 51.9, according to the National Bureau of Statistics — compared to February's reading of 50.6. Analysts had expected a reading of 51 for March, according to Reuters. PMI readings above 50 signify expansion.

Meanwhile, U.S. stock futures were flat in overnight trading on Tuesday after the Dow Jones Industrial Average slipped from its record level amid fears about rising interest rates.

The major averages were pressured Tuesday by rising interest rates, as the U.S. 10-year Treasury yield notched a 14-month high of 1.77%. Bond yields have been on the rise this year amid a strong Covid-19 vaccine rollout and expectations of a broad economic recovery.

Investors will be keeping an eye on details of President Joe Biden's infrastructure plan on Wednesday. The spending package could cost more than $3 trillion. While private payroll data from ADP will be released, giving another indication on the state of health of the U.S. economy.

OPEC and allies, a group known as OPEC+, are set to meet on Thursday following a month of volatility in oil prices amid concerns about extended pandemic lockdowns in Europe. On the corporate front in Europe, Daimler holds an AGM while Lloyd's of London releases full-year results.

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– CNBC's Maggie Fitzgerald and Eustance Huang contributed to this market report.

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