LONDON – European stocks are expected to open flat to lower on Wednesday following the latest round of talks between Russia and Ukraine aimed at finding a solution to the conflict.
According to data from IG, the UK FTSE index opens 7 points higher at 7,536, the German DAX 34 points lower at 14,767, the French CAC 40 up 8 points at 6,775 and the Italian FTSE MIB 43 points lower at 24,630.
Investor sentiment was boosted on Tuesday after negotiations between Russian and Ukrainian officials in Turkey, during which Russia’s deputy defense minister claimed Moscow had decided to “drastically” curb its military activities near the Ukrainian capital.
Alexander Fomin, speaking in Instabul after the talks, said Russia will slow down its military operations near Kyiv and Chernihiv to allow peace talks to move forward. Russia previously claimed it would reduce military operations in other parts of Ukraine but then continued its advance.
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Growing hopes of a ceasefire seemed to boost investor sentiment on Tuesday, as Dow Jones Industrial Average futures rose 200 points, or 0.6%. S&P 500 futures were also up 0.6%, while Nasdaq 100 futures were up 0.7%. Meanwhile, the price of US benchmark West Texas Intermediate crude, which soared following Russia’s invasion of Ukraine, fell more than 4% to $100 a barrel.
Doubts about the pledge have surfaced, however, and while the Russian military has begun moving some of its troops in Ukraine from areas around Kyiv to positions elsewhere in Ukraine, Pentagon press secretary John Kirby warned that the troop movements did not indicate a withdrawal would run out .
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Asia-Pacific stocks were mixed in Wednesday’s trading as investors monitor developments surrounding the war in Ukraine. In the United States, traders are keeping an eye on a number of key economic reports while also monitoring the Federal Reserve’s planned rate hikes.
Tuesday’s vacancies and labor turnover survey showed 11.3 million vacancies, up from the 11.1 million expected. The ADP will also release its private payroll data ahead of Friday’s closely watched monthly jobs report.
Upcoming data releases include Russia’s latest consumer and business confidence data. Retailer Next is set to release its latest earnings.
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— CNBC’s Amanda Macias contributed to this market report.