Modest gains in early trades

  • German DAX futures +0.6%
  • UK FTSE futures +0.6%
  • Spanish IBEX futures +0.7%

This follows a decent rebound in trading yesterday after the poor start to the week on Monday. The overall risk mood is keeping relatively steady for now as China jitters are placed on the sidebar with the Fed coming into the spotlight later.

In Asia, the Nikkei closes down by 0.7% as the retreat continues in Japanese stocks after a test of the February highs for the index. In China, the Shanghai Composite is up 0.4% at the highs for the day going into the final hour of trading.

Elsewhere, US futures are up roughly 0.3% to 0.4% so that is helping to keep a calmer tone as well to kick start European trading.