European markets opened mixed on Wednesday morning, as investors monitored a fresh batch of corporate earnings and economic data.
The pan-European Stoxx 600 was flat shortly after the opening bell, with sectors and major bourses pointing in opposite directions.
In Asia, equities crept higher on Wednesday after China’s central bank unexpectedly announced it would reduce the amount of cash lenders could hold as reserves. The move was seen as an attempt to bolster liquidity in Beijing’s banking system. MSCI’s index of Asia-Pacific shares, excluding Japan, was around 0.5 percent higher.
Meanwhile, investor confidence in the global economy appeared to deteriorate slightly after the International Monetary Fund (IMF) said Tuesday that medium-term risks were tilted towards the downside. The Washington D.C.-based institute cited financial vulnerabilities, geopolitical tensions and trade tariffs as potential headwinds over the coming months. However, the IMF left its worldwide growth forecasts unchanged for 2018 and 2019.
Back in Europe, Danone, Vopak and Rio Tinto were among the major companies set to release their latest figures on Wednesday morning.
On the data front, a final estimate of the euro area’s March inflation rate is expected to be published at around 10 a.m. London time.
