Europe's stocks head for negative open amid concerns over recovery, PMIs ahead

  • London's FTSE is seen opening 31 points lower at 6,671, Germany's DAX 78 points lower at 14,604, France's CAC 40 down 21 points at 5,928 and Italy's FTSE MIB 113 points lower at 23,749, according to IG.

LONDON — European stocks are expected to open lower on Wednesday amid renewed concerns over the global economic recovery outlook, given a surge of Covid infections in Europe and renewed lockdowns.

London's FTSE is seen opening 31 points lower at 6,671, Germany's DAX 78 points lower at 14,604, France's CAC 40 down 21 points at 5,928 and Italy's FTSE MIB 113 points lower at 23,749, according to IG.

The negative trend expected in European markets today follows a similar trading pattern in Asia-Pacific, where shares were largely lower as concerns over the world's recovery from the pandemic weighed on investor sentiment. U.S. stock futures were trading flat in early Wednesday morning.

Many regions globally are seeing an increase in new Covid-19 cases as highly contagious variants continue to spread, the World Health Organization said earlier this week.

In Europe, authorities continue to struggle with the virus as the region experiences a third Covid wave that has prompted France and Germany to extend lockdown measures.

European investors will be keeping an eye on flash purchasing manager's index (PMI) data for March from the euro zone, Germany and France on Wednesday for more clues on the state of the region's manufacturing and services industries.

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Concerns about the recovery come on the one-year anniversary of the market bottom. Stocks have since rebounded with the S&P 500 rallying about 80% from the low a year ago, marking the best start to a new bull market on record. 

Earnings Wednesday come from E.On and Bellway, while Commerzbank releases its annual report.

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