Modupe Gbadeyanka
By Investors Hub
European markets are subdued on Wednesday amid cautious moves by investors due to lingering worries about global economic slowdown and uncertainty about Brexit and a U.S.-China trade deal.
Some of the markets in the region are off early lows, with a few even making it to positive territory on selective buying at lower levels.
The downside remains marginal thanks to China’s central bank pumping liquidity into the country’s banking system. The markets are also reacting positively to news the U.S. Senate is stepping off the sidelines to try to end the month-long government shutdown.
U.S. Senate leaders have agreed to vote on competing proposals to reopen the government, the first sign of a possible way out of the shutdown.
Meanwhile, markets are looking ahead to the European Central Bank’s monetary policy announcement, due on Thursday and some crucial economic data from the region over the next few days.
While the U.K.?s FTSE 100 Index is down by 0.3 percent, the German DAX Index is up by 0.2 percent and the French CAC 40 Index is up by 0.4 percent.
Shares of Metro Bank have moved sharply lower after the bank cautioned that its growth softened in the fourth quarter.
Meanwhile, French retailer Carrefour is bouncing back after suffering a steep loss in the previous session following an earnings warning.
On the Brexit front, former U.K. Chancellor George Osborne reportedly thinks a delay to Brexit will be the most likely outcome following the political deadlock. Osborne was among those who campaigned for the U.K. to remain part of the European Union.
Speaking at the World Economic Forum in Davos, Switzerland Osborne said a delay to the official exit date would give the country the space to explore viable alternatives to Theresa May’s withdrawal agreement. He also spoke of the possibility of exploring a second referendum.
May, who has ruled out a second referendum, is scheduled to present an updated Brexit plan to parliament on January 29th.
