European markets head for higher open on U.S. stimulus optimism

  • London's FTSE is seen opening 3 points higher at 5,902, Germany's DAX up 27 points at 12,785, France's CAC 40 up 6 points at 4,944 and Italy's FTSE MIB 102 points higher at 19,514, according to IG.

European stocks are expected to open slightly higher on Wednesday amid renewed optimism for the prospects of stimulus talks in the U.S.

London's FTSE is seen opening 3 points higher at 5,902, Germany's DAX up 27 points at 12,785, France's CAC 40 up 6 points at 4,944 and Italy's FTSE MIB 102 points higher at 19,514, according to IG.

European markets are expected to follow a positive trend set in the U.S. Wednesday given the latest political developments on stimulus talks.

U.S. stock index futures rose in overnight trading after White House Chief of Staff Mark Meadows said that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have made "good progress" during talks, before adding that they "still have a ways to go" before an agreement is reached.

The pair are due to talk again Wednesday and he hopes to see "some kind of agreement before the weekend," Meadows said. Mnuchin and Pelosi's conversation Tuesday continued a last-ditch attempt to hash out an agreement before the Nov. 3 election.

Meanwhile, overnight in Asia-Pacific markets, stocks were mixed in Wednesday trade as investors continued to watch stimulus talks.

Shares of Cathay Pacific in Hong Kong jumped 4.02% by the afternoon after the company on Wednesday announced that about 5,900 employees will be laid off as part of a restructuring plan. The airline's subsidiary Cathay Dragon will also cease to operate with effect from Wednesday.

European earnings in focus on Wednesday include Novozymes, Telenor, AkzoNobel and Randstad, Iberdrola, Nestle, Manchester United and Metro Bank. On the data front, U.K. inflation data for September is due.

– CNBC's Pippa Stevens and Eustance Huang contributed reporting to this story.

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