LONDON — European stocks are expected to open higher Wednesday, continuing the positive sentiment seen in global markets since the start of the week.
The U.K.’s FTSE index is expected to open 0.04% higher from Tuesday’s close, Germany’s DAX futures point to a 0.48% gain at the open, and France’s CAC 40 indicates a 0.19% gain, according to FactSet.
Global stock markets have been trading higher earlier this week as investors digested the first executive orders that newly inaugurated U.S. President Donald Trump signed on Monday.
Market gains were attributed to the fact that, while Trump issued a broad memorandum directing federal agencies to assess what he sees as unfair trade policies with foreign countries, he stopped short of authorizing new levies on his first day back in office. Investors took that as a sign that he may be less gung-ho about implementing tariffs than previously expected.
In Europe, the U.K. revealed that it borrowed £17.8 billion ($21.9 billion) in December last year, £10.1 billion more than in December 2023. The figure, the highest budget deficit recorded for December in four years, was also more than the £14 billion that most economists expected.
Meanwhile, investment bank Berenberg upgraded automaker BMW to “buy” from “hold.” The broker said it liked the stock as BMW’s factories are equipped to manufacture a mix of drivetrains rather than focus on either electric or gasoline powered vehicles amid the challenging trading environment for automakers.
Asia-Pacific markets mostly rose overnight, while S&P 500 futures rose last night after the first trading session post-Inauguration Day ended with strong gains.
The impact that Trump’s second term in office might have on the global economy and geopolitics has been a key talking point at the World Economic Forum in Davos, Switzerland.
CNBC’s coverage of the annual forum continues, with António Guterres, secretary-general of the United Nations, due to speak at 11:30 a.m. Davos time. Spanish Prime Minister Pedro Sanchez will speak at 3:45 p.m.
CNBC guest highlights include Mark Rutte, the head of NATO, and Polish President Andrzej Duda and Sanchez.
Dick Schoof, the Netherlands’ prime minister, the United Arab Emirates’ economy and trade ministers, Saudi Arabia’s Finance Minister Mohammed Al Jadaan and Finnish President Alexander Stubb will also be speaking to CNBC at the forum on Wednesday.
There are no major data releases in Europe Wednesday, but easyJet will release its latest earnings report.
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