European markets head for muted open amid mixed global market sentiment

• European stocks are expected to open in flat to lower territory on Wednesday amid more muted and mixed sentiment globally.
• The U.K.'s FTSE index is seen opening 1 point higher at 7,223, Germany's DAX 19 points lower at 15,506, France's CAC 40 down 18 points at 6,654 and Italy's FTSE MIB 1 point higher at 26, 175, according to IG data.

LONDON — European stocks are expected to open in flat to lower territory on Wednesday amid more mixed sentiment globally overnight.

The U.K.'s FTSE index is seen opening 1 point higher at 7,223, Germany's DAX 19 points lower at 15,506, France's CAC 40 down 18 points at 6,654 and Italy's FTSE MIB 1 point higher at 26, 175, according to IG data.

The mixed open for European markets comes after a series of upbeat trading sessions in recent days as investors digested the latest earnings from the U.S.

On Tuesday, U.S. stock indexes gained as major companies continued to report strong third-quarter earnings, easing concerns that persistent Covid cases and rising costs would derail corporate America's profit recovery. Of the S&P 500 components that have reported thus far, 82% have topped expectations, according to FactSet.

Still, while reports have been strong, investors are looking for more clues from corporate America about supply chain issues and how soon these can be resolved, as well as inflation. U.S. stock index futures were flat during overnight trading on Tuesday.

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Meanwhile, shares in Asia-Pacific were mostly higher in Wednesday morning trade as China kept its benchmark lending rate unchanged. Investors in the region were also reacting to the latest report from the International Monetary Fund (IMF) on Tuesday in which it slashed its 2021 economic growth forecast for Asia. The IMF now expects the region to grow by 6.5% this year, as compared to its April forecast for a 7.6% expansion.

Europe investors will be looking out for earnings from Carrefour, Atos, Metro, Sartorious, AkzoNobel, Roche, Nestle, Antofagasta and Metro Bank on Wednesday.

Data releases include U.K. inflation data for September, German producer prices for September and the latest Russian producer price index figures.

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

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