European stock markets traded as expected on Wednesday, as investors kept analyzing weakness in Asian markets fueled by China’s regulatory crackdown. Moreover, some key market events such as additional corporate earnings and the outcome of the latest Federal Reserve meeting will also be under investors’ radar.
The DAX futures contract in Germany trended 0.1% lower, the FTSE 100 futures contract in the U.K. dropped 0.1%, while the CAC 40 futures in France grew 0.2%.
Asian markets weakened Wednesday, dropping for a third consecutive session and marking sentiment in Europe, as investors kept fretting about the regulatory crackdowns by the Chinese regulatory system.
That in mind, losses were a bit subdued as China’s financial media attempted to calm the issue. More so, investors in this region will be unwilling to take significant positions ahead of the summary of the latest policy-setting meeting from the U.S. Federal Reserve.
The Fed is thought to keep interest rates at record lows. Turning to corporate news, Deutsche Bank (DE:DBKGn) is going to be closely watched on Wednesday after the German banking giant exceeded profit forecasts for the second quarter even with a drop in revenue at its major investment banking sector. It also updated its revenue guidance for 2022.
Elsewhere, mining giant Rio Tinto (LON:RIO) fell short of expectations but declared a special dividend of $3 billion after a windfall on sky-high iron ore and copper prices.
The tech sector will also be in the spotlight after Google parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL) all shared significant quarterly earnings after the close on Wall Street Tuesday.