European Markets likely to open higher; global cues mixed

The major European index futures are pointing towards a higher opening for the European markets on Wednesday, as oil is extending its slide. Global cues are mixed, as the U.S. market finished lower overnight and the major Asian markets are a mixed pack on Wednesday.

Stock markets in Europe may focus on a few key Euro-Zone economic reports scheduled for release today. That said, caution is likely to prevail ahead of the interest rate decisions by the ECB and the Bank of England on Thursday and the U.S. non-farm payrolls report to be released on Friday. The Brent North Sea crude futures were down 31 cents at $108.03 a barrel by 11:03 p.m. ET after the contract fell by $1.07 on Tuesday to settle at $108.34 a barrel, its lowest close since April 10, on London's ICE Futures Europe exchange. Oil prices fell for a fourth day as Hurricane Gustav caused minimal damage to the refineries and rigs in the Gulf of Mexico region. On Tuesday, Wall Street started off firm on the back of falling oil prices, but the major averages pared their gains in late trade as sentiment turned negative due to weakness in the resource and tech sectors. The Dow closed down 26 points at 11,516, the Nasdaq lost 18 points to 2,349 and the broader S&P 500 dropped 5 points to 1,277. In Asia Wednesday, Australia's All Ordinaries index is losing 0.3%, Hong Kong's Hang Seng index is down 1.3%, and China's Shanghai composite index is down 0.9%, while Japan's Nikkei 225 index is advancing 0.9% and South Korea's KOSPI is gaining 1.1%, The major economic reports scheduled for release in Europe are the Euro-Zone second quarter GDP and July retail sales reports. In the U.S., the factory goods orders report and the Fed's beige book on current economic conditions are due for release today. The European markets rose on Tuesday, as a drop in crude oil prices eased inflation concerns and lifted airlines and retailers. Strength in banking and insurance stocks also contributed to the gains. The FTSEurofirst 300 index of pan-European blue chips closed up 0.9% at 1,200 and the narrower DJ Stoxx 50 index rose 0.8% to finish at 2,925.11. In Europe, the U.K.'s FTSE 10 index rose 0.32% to finish at 5,620, France's CAC 40 index jumped 1.50% to close at 4,539 and Germany's DAX index climbed 1.51% to end at 6,518. In the Asian session Wednesday, the euro traded near a seven-month low against the U.S. dollar and a five-month low against the yen. The euro was quoted at $1.4496 and at 157.76 yen in early deals. Against the pound, the euro weakened to 0.8136 pound from Tuesday's close of 0.8151 pound. In the Eurpean markets, Allianz SE may react to a report that Europe's biggest insurer may take writedowns of about EUR1.2 billion after the sale of its Dresdner Bank division to Commerzbank AG, while Iberdrola SA, the world's largest owner of wind parks, may move as New York state officials are expected to rule on its $4.5 billion bid to buy U.S. utility Energy East Corp. InBev NV, the Belgian brewer, is likely to move as it is reportedly planning to sell its Korean unit for $52 billion. Michelin & Cie. may rise after the world's second-largest tiremaker said that it will increase prices on tires for cars, trucks and buses by an average 3% to 5% due to rising raw material costs. UniCredit SpA may rise after Italy's Treasury Ministry said that Italy's largest lender has an option to buy Poland's remaining 4% stake in Bank Pekao SA by the end of next year. UniCredit bought control of Poland's largest lender in 1999 Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved