European Shares Set For Steady Start

European stocks may open on a positive note Wednesday after Wall Street closed slightly higher overnight following a four-day selloff.

Asian markets traded mixed as China struggled to contain a surge in COVID-related deaths after an abrupt shift from its Zero-COVID policy.

The Japanese yen held onto gains after soaring to just above 130 per dollar on Tuesday— its strongest since August — in the wake of the Bank of Japan’s unexpected hawkish shift.

Gold edged down slightly but hovered near one-week high as investors factor in the possibility of a recession in the U.S. next year.

Oil prices were little changed as worries about rising COVID-19 cases in top oil importer China offset data showing a drawdown in U.S. crude oil inventories.

In economic releases, public sector finance data from the U.K. and consumer sentiment survey results from Germany are due later in the session.

Across the Atlantic, trading may be impacted by reaction to reports on consumer confidence and existing home sales.

U.S. stocks eked out modest gains overnight to snap a four-day losing streak despite concerns about the upcoming earnings season and winter holiday shopping.

The Dow rose 0.3 percent and the S&P 500 edged up 0.1 percent while the tech-heavy Nasdaq Composite ended flat with a positive bias.

European stocks closed on a weak note Tuesday after the Bank of Japan’s surprise policy shift.

The pan European STOXX 600 shed 0.4 percent. The German DAX and France’s CAC 40 index both fell around 0.4 percent while the U.K.’s FTSE 100 inched up 0.1 percent.

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