European Markets Head for Negative Open as US President Debate Weighs on Sentiment

London’s FTSE is seen 17 points lower at 5,884, Germany’s DAX down 24 points at 12,788, France’s CAC 40 down 12 points at 4,816 and Italy’s FTSE MIB down 80 points at 18,921, according to IG, CNBC reported.

The first US presidential debate between incumbent President Donald Trump and Democratic nominee Joe Biden could be weighing on investor sentiment worldwide, with the two constantly exchanging sharp remarks in a face-to-face challenge. 

Hardly a minute went by in the 90-minute brawl without one of the candidates angrily interrupting the other, whether on the coronavirus pandemic, the Supreme Court, the economy or anything else, including each other’s families.

US stock futures declined early Wednesday morning as traders digested the debate, while it also soured sentiment in Asia-Pacific markets that traded mixed overnight.

Investors also reacted to the release of China’s manufacturing activity data for September which came in at 51.5, above analysts’ expectations and slightly higher than August’s 51.0 figure, according to the country’s National Bureau of Statistics. PMI readings above 50 indicate expansion from the previous month, while those below that figure signal a contraction.

Meanwhile, in coronavirus developments, Regeneron announced its REGN-COV2 drug reduced viral levels and improved symptoms in non-hospitalized coronavirus patients.

Business events Wednesday include Volkswagen’s AGM and on the data front, preliminary euro zone inflation data for September is due, as well as German unemployment data for September.