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European shares are expected to open higher on Wednesday as the U.S. Treasury Secretary concludes a visit to the euro zone, a region that is increasingly facing a backlash against austerity and bailouts.
The FTSE is called up by 2 points at 6,315, the German DAX up 21 points at 7,658 and the French CAC up 12 points at 3,682.
On Tuesday, U.S. Treasury Secretary Jack Lew wrapped up his visit to Europe, calling on his European counterparts to strike a balance between growth and austerity and to boost demand.
Lew met France and Germany's finance ministers on Tuesday as he concluded his two-day trip by saying Europe needed a "balanced approach between growth and fiscal consolidation." The message may have struck a chord France, which is grappling with slow growth and high unemployment but Germany, which has the biggest trade surplus in the euro zone, is the region's biggest proponent of austerity measures.
More criticism for Europe's austerity strategy case from Billionaire George Soros said on Tuesday that Germany was wrong to enforce austerity, saying it "does not work." During a speech in Germany's financial center of Frankfurt on Tuesday, Soros said Germany was "following the wrong policies on the euro zone…you can't shrink the debt burden by shrinking the budget deficit."
Slovenia is the latest euro zone country to resist financial aid, with the country's prime minister saying on Tuesday that he will "do everything" to avoid a European bailout. Borrowing costs rose following a weak bond auction on Tuesday, after an OECD report stated that Slovenia faces a "severe banking crisis" and "deep recession."
Asian stock markets were slightly up on Wednesday after China reported a trade deficit of $884 million, disappointing expectations of a $15.4 billion surplus, Reuters reported. Imports were strong, up 14.1 percent versus expectations of a 5.2 percent rise.
However, a downgrade by Fitch ratings agency which cut China's long-term local currency credit rating to A-plus from AA-minus on Tuesday with a stable outlook, weighed on investor sentiment. Fitch cited financial risks from rapid credit expansion alongside the rise of shadow banking activity for the downgrade.
Companies reporting earnings today include Raiffeissen and Vedanta.
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European shares are expected to open higher on Wednesday as the U.S. Treasury Secretary concludes a visit to the euro zone, a region that is increasingly facing a backlash against austerity and bailouts.
The FTSE is called up by 2 points at 6,315, the German DAX up 21 points at 7,658 and the French CAC up 12 points at 3,682.
On Tuesday, U.S. Treasury Secretary Jack Lew wrapped up his visit to Europe, calling on his European counterparts to strike a balance between growth and austerity and to boost demand.
Lew met France and Germany's finance ministers on Tuesday as he concluded his two-day trip by saying Europe needed a "balanced approach between growth and fiscal consolidation." The message may have struck a chord France, which is grappling with slow growth and high unemployment but Germany, which has the biggest trade surplus in the euro zone, is the region's biggest proponent of austerity measures.
More criticism for Europe's austerity strategy case from Billionaire George Soros said on Tuesday that Germany was wrong to enforce austerity, saying it "does not work." During a speech in Germany's financial center of Frankfurt on Tuesday, Soros said Germany was "following the wrong policies on the euro zone…you can't shrink the debt burden by shrinking the budget deficit."
Slovenia is the latest euro zone country to resist financial aid, with the country's prime minister saying on Tuesday that he will "do everything" to avoid a European bailout. Borrowing costs rose following a weak bond auction on Tuesday, after an OECD report stated that Slovenia faces a "severe banking crisis" and "deep recession."
Asian stock markets were slightly up on Wednesday after China reported a trade deficit of $884 million, disappointing expectations of a $15.4 billion surplus, Reuters reported. Imports were strong, up 14.1 percent versus expectations of a 5.2 percent rise.
However, a downgrade by Fitch ratings agency which cut China's long-term local currency credit rating to A-plus from AA-minus on Tuesday with a stable outlook, weighed on investor sentiment. Fitch cited financial risks from rapid credit expansion alongside the rise of shadow banking activity for the downgrade.
Companies reporting earnings today include Raiffeissen and Vedanta.
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