BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open higher on Wednesday after Federal Reserve Chairman Jerome Powell sent a strong signal that the U.S. central bank is ready to consider cutting interest rates later this year to sustain growth.
Meanwhile, Mexican Foreign Minister Marcelo Ebrard wrote on Twitter that there is an '80/20' chance that he will be able to make a deal with the U.S. over immigration.
Asian stocks followed Wall Street higher and U.S. bond yields stepped up from their recent lows, as investors digested remarks by Fed Chair Powell.
Chinese President Xi Jinping said the country's economy will have enough factors of support to maintain stable, healthy and sustainable development.
In another development, the People's Bank of China today pumped 60 billion yuan (about 8.7 billion U.S. dollars) into the financial system through open market operations to improve liquidity.
Trade developments remained in focus ahead of a meeting between U.S. Treasury Secretary Steven Mnuchin and People's Bank of China Governor Yi Gang at the G20 finance leaders meeting this weekend in Japan.
The World Bank Group has downgraded its global real GDP growth forecast to 2.6 percent for 2019, down by 0.3 percentage points from its previous forecast, citing subdued investment and risks from escalating trade tensions.
In economic releases, China's private sector activity growth moderated to a three-month low in May, partly driven by softer rise in services activity, survey results published by IHS Markit revealed. The Caixin composite output index fell to 51.5 from 52.7 in April.
U.S. reports on private sector employment and service sector activity may attract attention later today along with comments by several Fed officials.
The Fed is also due to release Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, which could shed additional light on the outlook for interest rates.
Closer home, purchasing Managers' survey data from the U.K. and major euro area economies are due today, headlining a busy day for the European economic news.
The Dow and the S&P 500 climbed around 2.1 percent overnight while the tech-heavy Nasdaq Composite surged as much as 2.7 percent.
European markets rose on Tuesday after a spokesperson for China's Commerce Ministry said that the trade conflict with the U.S. will ultimately need to be resolved through dialogue and consultation.
Euro zone inflation fell more than expected last month, reinforcing the case for more stimulus by the European Central Bank.
The pan-European Stoxx 600 gained 0.6 percent. The German DAX rallied 1.5 percent, France's CAC 40 index rose half a percent and the U.K.'s FTSE 100 advanced 0.4 percent.
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