European Stocks Poised For Positive Open

(RTTNews) - European stocks ae likely to open higher on Wednesday, tracking firm cues from Asia and rising metal prices as strong U.S. GDP data supported risk appetite. However, trading activity is expected to remain thin as both the U.S. and European markets will close early today ahead of the Christmas holiday.

The economic calendar remains light, with investors awaiting U.S. jobless claims data later in the day for further clues to the health of the world's largest economy.

Meanwhile, Standard & Poor's Ratings Services indicated that it may downgrade the sovereign rating of Russia due to the rapid deterioration in monetary flexibility and the impact of the weakening economy on the financial system.

Asian stocks are mostly higher, although Chinese shares fell sharply on profit taking on concerns recent gains were overdone. The benchmark Shanghai Composite index is down 1.7 percent, extending Tuesday's 3 percent loss, amid speculation authorities are taking steps to cool the stock market.

Japan's Nikkei index rose 1.2 percent as trading resumed after a public holiday on Tuesday. Japan's Parliament today re-elected Shinzo Abe to serve another term as Prime Minister following his big victory in a Dec. 14 snap election that was billed as a referendum on his economic growth blitz.

The dollar held steady at two-week highs against the yen in subdued holiday trading, as big revisions to U.S. GDP data revived the prospects of higher interest rates from the Federal Reserve. Crude prices are declining after climbing to their highest level in more than a week yesterday. In domestic corporate news, orthopedics devices maker Stryker Corp. is planning a takeover bid for U.K.-based medical device maker Smith & Nephew Plc in the coming weeks, the Bloomberg reported, citing people with knowledge of the matter.

The U.S. Food and Drug Administration approved Novo Nordisk's new drug application for Saxenda, the first once-daily human glucagon-like peptide-1 analogue for the treatment of obesity.

Paris-based Wendel announced that it had agreed to buy a majority interest in Constantia Flexibles, valuing the company at 2.3 billion euros.

The European markets extended their 'Santa rally' into a sixth day on Tuesday, propelled by gains in U.S. equities as investors reacted to stellar U.S. growth figures. The German DAX rose 0.6 percent, France's CAC 40 advanced 1.4 percent and the FTSE 100 added 0.3 percent. Greek shares fell after Prime Minister Antonis Samaras failed to get the support needed to elect a new president in a second round of voting.

U.S. stocks turned in a mixed performance overnight following the release of a mixed batch of economic data. The Dow rose 0.4 percent to close above 18,000 for the first time and the S&P 500 edged up 0.2 percent to set a fresh record closing high, while the tech-heavy Nasdaq shed 0.3 percent.

In economic news, U.S. GDP grew at a robust 5.0 percent pace in the third quarter, the fastest in 11 years, and a measure of consumer sentiment increased in December to its highest level in nearly eight years, while durable goods orders and new home sales fell unexpectedly last month.