Anshuman Daga takes a look at the day ahead in European and global markets.
While European shares fell for the third straight session on Tuesday, spooked by recession worries, another hat-trick dominated the World Cup a few hours later.
Three goals from Portugal's 21-year-old Goncalo Ramos against Switzerland in his first World Cup sent his side through to the quarter-finals for the first time in 16 years. A 3 - 0 shootout win by Morocco against former champions Spain made Morocco the first Arab nation to qualify for the tournament's quarter-finals.
Asian equities traded rangebound on Wednesday after U.S. stocks fell as markets start to factor in higher interest rates hikes, as there seems to be little excitement for risky assets in the arena of European stocks.
For the euro zone, commentary by officials is hinting that there is a peak in rates, but anaemic growth and stubbornly high inflation are haunting investors.
On Tuesday, the ECB policymaker Constantinos Herodotou said that interest rates will go up again but are now very close to their neutral level.
Markets will focus on Germany's industrial output data, while the euro zone third-quarter GDP and employment numbers and UK house prices are some of the other economic indicators for the day.
The euro zone government bond yields dropped for the first time in three days on Tuesday as a result of a raft of central bank decisions next week.
A Reuters poll of market strategists predicts the dollar will rebound against most currencies over the next few months, with the growing threat of recession in the U.S. and elsewhere keeping it firm in 2023 through safe-haven flows.
On Tuesday, top bankers from JPMorgan Chase Co, Bank of America and Goldman Sachs warned of a recession next year, as inflation threatens consumer demand.
Airbus gave up a numerical forecast for jet deliveries and a date for its key production goal, but it retained its financial targets as it limped towards the end of a year battered by disruptions in factories and supply chains.
British prime minister Rishi Sunak said he would ease restrictions on building onshore wind farms, as a result of a revolt by his party's lawmakers who had demanded they be allowed with local support.
Markets could be affected by key developments on Wednesday: