Europe open: Shares flat as futures point to positive US opening

European stocks were flat on Wednesday on the back of positive corporate earnings and higher US futures despite a sudden halt in US fiscal stimulus talks.

The pan-European STOXX 600 index rose 0.04%, with all other continental bourses flatlining.

US Dow futures were up by 185 points, after heavy losses on Wall Street overnight as US President Donald Trump called off talks with Democratic lawmakers on relief measures to mitigate the coronavirus pandemic’s economic impact until after the election next month.

“We should have seen a much deeper sell-off for the global markets, and the US futures should have tanked,” said Naeem Aslam at Avatrade.

“However, this isn’t the case as the US stock futures are actually trading in positive territory. The reason … is because investors know that whoever will win the US presidential election, another stimulus package is more likely to happen.”

In corporate news, Dialog Semiconductor jumped 2.5% after it forecast better-than-expected revenue in its third quarter.

UK supermarket chain Tesco also gained as it reported a jump in sales and forecast full-year retail operating profit to be at least the same level as 2019-20.