LONDON — European stocks were set to open higher Wednesday as investors attempt to look beyond escalating tensions in the Middle East and await fresh employment data out of the region.
The U.K.’s FTSE 100 was seen opening 28 points higher at 8,300, Germany’s DAX up 58 points at 19,249.8, France’s CAC 40 39 points higher at 7,601 and Italy’s FTSE MIB up 46 points at 33,720, according to IG data.
It follows a negative start to the trading month on Wall Street, with the Nasdaq Composite shedding 1.5% and the S&P 500 losing 0.9%, after Iran launched a ballistic missile attack on Israel in retaliation for its recent killing of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
The attack came on the heels of Israel‘s deployment of ground forces into south Lebanon, escalating its offensive on Hezbollah, the Iran-backed militant group.
Oil prices spiked following the attack while the CBOE Volatility Index (VIX), also known as Wall Street’s fear gauge, topped 20 at its high of the day.
U.S. futures remained lower in overnight trading, while Asia-Pacific markets were mixed.
Mainland China markets were closed Wednesday for the Golden Week holiday and will remain closed for the rest of the week. However, Hong Kong’s Hang Seng index traded more than 6% higher, signaling more optimism about Beijing’s stimulus policies.
Back in Europe, investors are awaiting fresh unemployment data from the region as well as U.K. house price data. British sports retailer JD Sports also reports earnings.
— CNBC’s Dan Mangan contributed to this report.