US-China trade talks, earnings and Fed policy in focus

The FTSE 100 is seen 28 points higher at 6,861, the CAC is expected to open up around 3 points at 4,931, while the DAX is poised to start 15 points lower at 11,203, according to IG.

Market focus is largely attuned to global trade developments, with Chinese Vice Premier Liu He arriving in Washington to meet U.S. officials on Wednesday.

U.S. Treasury Secretary Steven Mnuchin said on Tuesday that he expected the world’s two largest economies to make significant progress toward a comprehensive trade agreement this week.

However, many market participants remain skeptical about whether the economic giants can bridge differences over a number of issues, including intellectual property rights and technology transfers.

Investors are also looking to the outcome of the Federal Reserve’s rate review later in the session, amid heightened expectations policymakers at the U.S. central bank will reinforce their dovish stance given signs of an economic slowdown.

In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, was little changed from the previous session on Wednesday.

Back in Europe, the euro area is expected to publish economic sentiment and business confidence figures for January at around 10:00 a.m. London time.

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