European markets head for lower open, losing momentum after previous rally

• European stocks are expected to open lower Wednesday, as markets lose momentum seen earlier in the week following a rally on Wall Street.
• London's FTSE is seen opening 42 points lower at 6,698, Germany's DAX 50 points lower at 14,409, France's CAC 40 down 15 points at 5,915 and Italy's FTSE MIB 79 points lower at 23,731, according to IG.

European stocks are expected to open lower Wednesday, as markets lose momentum seen earlier in the week following a rally on Wall Street.

London's FTSE is seen opening 42 points lower at 6,698, Germany's DAX 50 points lower at 14,409, France's CAC 40 down 15 points at 5,915 and Italy's FTSE MIB 79 points lower at 23,731, according to IG.

International markets are keeping an eye on the passage of the Covid relief bill in the U.S. this week; Democrats in the U.S. House of Representatives are aiming to pass the $1.9 trillion coronavirus relief bill on Wednesday so that President Joe Biden can sign it by the weekend.

The legislation extends a $300 per week jobless benefit boost and programs expanding unemployment aid to millions more Americans through Sept. 6.

U.S. stock futures slipped in early Wednesday trading, following a sharp rebound in technology shares amid falling bond yields. Futures on the Dow Jones Industrial Average were little changed. S&P 500 futures and Nasdaq 100 futures dipped 0.19% and 0.22%, respectively.

On Tuesday, the Nasdaq Composite climbed 3.7% to post its best day since November, as investors poured back into popular growth names after a recent pullback. 

Asia-Pacific markets lost their early momentum on Wednesday too, with major indexes in Australia, Japan and South Korea struggling to hold onto earlier gains.

Earnings come from LEGO, Adidas, Inditex, Geberit, Just Eat, G4S, National Express, The Restaurant Group, Balfour Beatty and Foxtons. Data releases include the Netherlands' industrial output in January and Greek industrial output data for January.

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