European shares set for cautious open ahead of Fed summit

  • Focus for global investors this week remains on the Fed's Jackson Hole symposium, which takes place virtually on Thursday.
  • Germany's Ifo Institute will publish its August business climate and expectations indexes at 9 a.m. London time on Wednesday.

LONDON — European markets are set for a slightly lower open on Wednesday, tracking global sentiment as investors await a key meeting of central bankers.

Britain's FTSE 100 is seen around 16 points lower at 7,110, Germany's DAX is set to open down around 19 points at 15,887 and France's CAC 40 is expected to slip around 7 points to 6,657, according to IG data.

Shares in Asia-Pacific were similarly subdued in Wednesday's trading session, while U.S. stock futures pointed to a flat open on Wall Street after the S&P 500 and Nasdaq 100 notched record highs on Tuesday.

Focus for global investors this week remains on the Fed's Jackson Hole symposium, which takes place virtually on Thursday, as policymakers could detail their plans for tapering the central bank's $120 billion a month bond-buying program. Fed Chairman Jerome Powell will deliver a speech on Friday.

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Global equities have been propped up so far this week by easing fears that the Fed would taper imminently and the U.S. Food and Drug Administration's full approval of Pfizer and BioNTech's Covid-19 vaccine.

Back in Europe, Germany's Ifo Institute will publish its August business climate and expectations indexes at 9 a.m. London time on Wednesday, offering an insight into the state of the recovery for Europe's largest economy.

In the U.K., retailers reported the sharpest increase in spending for almost seven years in August but inventories fell to the lowest levels on record, exerting pressure on prices, data from the Confederation of British Industry (CBI) showed on Tuesday.

WHO Director-General Tedros Adhanom Ghebreyesus will give a news conference Wednesday to document the latest developments in the Covid-19 pandemic.

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