European equity markets were set to open lower on Wednesday, as investors reacted to early US midterm election results indicating a potential Democratic takeover of both houses of Congress. Such an outcome could raise the risk of political gridlock in Washington, curb government spending, and lead to tighter regulatory oversight of technology-related sectors, particularly artificial intelligence.
Still, bargain hunters appeared to be moving in to capitalise on recent market weakness, helping to contain losses across global equities. At the same time, investors are shifting their focus to October Eurozone inflation data, as well as the final services and composite PMI readings from across the bloc.
On the corporate side, earnings are due from Telecom Italia, Leonardo, BMW, Fresenius and BPER Banca, among others. In premarket trading, Euro Stoxx 50 futures were down 0.4%, while Stoxx 600 futures slipped 0.5%.
