Money Flow & EU Premarket: European Markets Set for a Positive Open Amid Improved Global Sentiment

European markets are expected to open higher on Wednesday as global market sentiment improves amid easing fears of a trade war between the U.S. and China, along with U.S. President Donald Trump’s criticism of the Federal Reserve. Global markets rallied on Tuesday on hopes of a potential breakthrough in the U.S.-China trade deadlock, sending U.S. equities sharply higher. Trump stated that the final tariffs on Chinese exports to the U.S. “won’t be anywhere near 145%.” However, he added that the rates “won’t be 0% either.”

U.S. stock futures are rising in overnight trading, and markets in the Asia-Pacific region also got a boost overnight after the president said he has “no intention” of firing Federal Reserve Chair Jerome Powell before his term ends next year. Trump has repeatedly criticized Powell and pushed for interest rate cuts, raising concerns that he might attempt to remove him from his post at the central bank, which traditionally operates independently of the government.

Investors in Europe will be watching for earnings results from NatWest and Heathrow Airport on Wednesday. New data is also expected on Purchasing Managers’ Indexes (PMIs), reflecting activity in the services and manufacturing sectors of the eurozone.