European Shares To Open On Steady Note Despite Weak China Data

(RTTNews) - European stocks may open on a steady note Wednesday despite Chinese trade data coming in below forecasts.

China's exports fell an annual 7.5 percent last month, a sharp drop from an 8.5 percent increase in April and the 0.4 percent fall expected, according to figures published by the official Xinhua news agency.

Imports fell 4.5 percent year on year, lower than the 8 percent analysts had expected - raising concerns over just how sustainable an economic rebound in the country will remain this year.

The European economic calendar remains light, with German industrial output data for April awaited later in the day. Across the Atlantic, a report on the U.S. trade deficit for April may attract some attention.

Asian markets traded mostly higher amid hopes the Federal Reserve may pause its rate hike cycle next week. The European Central Bank and the Bank of Japan will also hold policy meetings next week.

Gold traded flat despite a weaker dollar, while oil extend overnight losses on demand concerns after the release of weak Chinese data.

In its Global Economic Prospects report released on Tuesday, the World Bank has offered a dim outlook for the global economy.

U.S. stocks eked out modest gains overnight as investors awaited cues from inflation data and the FOMC meeting next week.

The Dow finished marginally higher, the S&P 500 rose 0.2 percent and the tech-heavy Nasdaq Composite added 0.4 percent.

European stocks rose on Tuesday despite growth and interest-rate concerns.

The pan European STOXX 600 advanced 0.4 percent. The German DAX edged up 0.2 percent, France's CAC 40 inched up 0.1 percent and the U.K.'s FTSE 100 gained 0.4 percent.