European shares look poised to open lower on Wednesday, as investors react to a suggestion from Federal Reserve Chair Jerome Powell that equities are “fairly highly valued.”
London’s FTSE 100 is expected to open 0.2% lower, according to IG, while the German DAX and France’s CAC 40 are slated to shed 0.3% and 0.4%, respectively.
Overnight in Asia, shares broadly moved lower, while U.S. stock futures were flat in the early hours of Wednesday morning.
Global markets were rattled after Federal Reserve Chair Jerome Powell on Tuesday said that asset prices, including equities, were trading at inflated levels.
“By many measures, for example, equity prices are fairly highly valued,” he said, when asked about the central bank’s tolerance levels for market prices.
Meanwhile, U.S. President Donald Trump said Ukraine could recoup all of its territory from Russia in a major shift in stance on Tuesday.
“I think Ukraine, with the support of the European Union, is in a position to fight and WIN all of Ukraine back in its original form,” the president said in a post on his Truth Social platform.
“With time, patience, and the financial support of Europe and, in particular, NATO, the original Borders from where this War started, is very much an option,” he added.
Trump met with Ukrainian President Volodymyr Zelenskyy at the United Nations General Assembly in New York on Tuesday, when he also expressed support for NATO members shooting down any Russian aircraft that breach their airspace.
Back in Europe, investors will be monitoring Germany’s Ifo Business Climate update due to be published later on Wednesday morning, while the September Swiss Economic Sentiment Index is also set for release during the session.
— CNBC’s Jeff Cox contributed to this article.
