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European Stocks Head for Lower Open As Markets Battle Nerves Over Growth

European Stocks Head for Lower Open As Markets Battle Nerves Over Growth

European stocks are expected to open lower on Wednesday, reflecting mixed trade in global markets amid nervousness over U.S. economic growth and a resurgence in Covid cases.

London’s FTSE is seen opening 26 points lower at 7,126, Germany’s DAX 8 points lower at 15,836, France’s CAC 40 also 8 points lower at 6,718 and Italy’s FTSE MIB 57 points lower at 25,992, according to IG.

The declines expected in Europe come after a choppy trading session in U.S. markets on Tuesday. The Dow Jones Industrial Average fell more than 200 points as investors reassessed the growth outlook following a smooth ride in the market this year. U.S. stock futures were flat in overnight trading.

The mixed moves stateside came as concerns over the potential economic hit of the delta variant weighed on investor sentiment, with Goldman Sachs downgrading its U.S. economic growth outlook over the weekend.

On Wednesday, the U.S. Labor Department will release its closely watched Job Openings and Labor Turnover Survey which will add to jobs data following last Friday’s U.S. nonfarm payrolls miss; nonfarm payroll growth in August increased by just 235,000 vs. expectations of 720,000.

Meanwhile, shares in Asia-Pacific were mixed in Wednesday trade, as data showed Japan’s economy saw 1.9% annualized growth, higher than the initial estimate for a 1.3% rise.

Earnings reports in Europe on Wednesday include full-year preliminary results from Dunelm, and Halfords releases a trading update. On the data front, Russian inflation for August and Italian retail sales for July are among the data releases to watch.

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