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LACKLUSTRE OPEN AS GEOPOLITICAL TENSIONS AND EARNINGS BITE (0751 GMT)
It was a lacklustre open for European stocks as geopolitical tensions weigh on risk sentiment.
Some less than stellar corporate results didn't help matters.
Shares in industry giants Siemens, Hiscox and BMW are down between 5.4%-7.5% after posting results, dragging down European bourses.
Overall the pan-European STOXX 600 index is 0.2% lower, with autos down 1.4% and leading losses on a sector basis after BMW's warning that output will be lower year-on-year.
Commerzbank shares are up 0.8%, in a volatile day, after some upbeat results , and Societe Generale are up 4% after it reported a smaller-than-expected loss in the second quarter.
Tech is one of the biggest sector gainer, up 0.8%. In the UK, FTSE-listed cyber security Avast shares soar 42% on positive developments in its planned merger with NortonLifeLock .
(Lucy Raitano)
MARKETS' MOMENT OF TRUTH (0650 GMT)
Markets are dealing with dual flashpoints today on inflation and cross-straits tensions.
Fed speakers have put paid to market thinking they will lighten their inflation war while, across in East Asia, China has its warheads trained on Taiwan as Nancy Pelosi hails Taiwan's free society.
China furiously condemned the trip by the speaker of the U.S. House of Representatives, which marked the highest-level U.S. visit to Taiwan in 25 years.
Geopolitical tensions are simmering as China embarks on an unprecedented six days of military drills surrounding Taiwan. Risks of escalation are mounting, warn security analysts.
For Fed watchers, concerns of faster U.S. rate rises are back on the radar after St. Louis Federal Reserve President James Bullard said rates will need to be 'higher for longer' if inflation does not recede.
That came after a trio of Fed officials from across the policy spectrum signalled that they remain resolute on the need to make policy more restrictive.
Traders now see a chance of about 44% that the Fed will hike by another 75 basis points at its next meeting in September. Heightened rate expectations punctured a two-week rally in U.S. equity markets.
On the data front, a slew of services and composite PMIs of developed economies such as Germany, Eurozone, U.K. and the U.S. for July will be released across today.
In the U.S., durable goods orders are expected to grow 1.9% m/m in Jun from 0.8% in the prior month while factory orders likely slowed to 1.2% m/m in Jun from 1.6%.
Asian stocks are stuck in a narrow range on Wednesday, with Japan recovering from two-week lows while Korean and Hong Kong shares edged up.
Key developments that should provide more direction to markets on Wednesday:
Major earnings: Societe Generale, Infineon Technologies, Commerzbank, Yum! Brands and eBay
Key Asian data: July releases of the S&P Global PMIs for Hong Kong, Singapore and India and thee Caixin China Services PMI
(Anshuman Daga)
EUROPE WARY AMID BUBBLING GEOPOLITICAL TENSIONS(0635 GMT)
European future contracts are mixed this morning, with a flat open signalled for pan-European and German stocks while FTSE futures are down 0.25%.
Most of the market moving news is coming from outside Europe, with tensions still bubbling amid U.S. House Speaker Nancy Pelosi's visit to Taiwan, and a stream of hawkish comments from Fed speakers also weighing on sentiment.
Higher interest rates are coming through for banks, with Germany's Commerzbank swinging to a bigger-than-expected second-quarter net profit on Wednesday.
European services PMI will be released this morning for an important read on the health of the region's economy and how inflation is impacting demand.
(Lucy Raitano)