Asian stocks traded in positive territory overnight, with the benchmark rebounding from a five-week low as data showed an improving US factory output. Bargain hunters bought up cheap stock overnight as investors risk appetite improved. European futures however, are showing a negative open, with the FTSE opening down 12 points to 6558.
European markets are likely to remain tentative pending Ukraine events. The situation remains delicate after the European Union threatened to implement further sanctions if the standoff continues. This could unnerve markets further, as investors keep a sharp eye on developments.
A bulk of economic data will also play on investors’ minds. German ZEW Economic Sentiment which is due at 10:00 GMT could show a decrease in business confidence as the Ukraine situation takes its hold, with sanctions potentially disrupting exports of natural gas to Europe. Building Permits and Core CPI figures for the US are expected at 12:30 GMT.
Gilts may start mixed ahead of a speech from Mark Carney due after the close with the central bank’s guidance policy on the minds of investors.
Gold was hit overnight by heavy selling pressure with the precious metal trading over $12 lower. With the US Federal Reserve’s meeting tomorrow, many expect the central bank will announce further tapering of its monthly bond-buying programme.