A look at the day ahead in European and global markets from Rae Wee

Investors will have a full calendar of major releases to digest on Wednesday, from bank and Big Tech earnings to a UK budget, along with a U.S. private payrolls report and growth figures for the U.S. and several big European economies.

As if that weren't enough, bitcoin is closing in on a record high, the European Union has decided to increase tariffs on China-built electric vehicles and the latest polls reinforce that the U.S. presidential election is set to go down to the wire.

European stocks were set for a negative opening ahead of the various risk events likely to shape the day's market moves, chief among them the first budget from Britain's Labour government after 14 years of Conservative rule.

Traders have already sold UK stocks and gilts in the run-up, unsure how finance minister Rachel Reeves can possibly balance high debt, public spending pledges and a promise not to hike the income tax.

Sterling held steady around the $1.30 level, although options pricing reflected some degree of nervousness over the budget outcome.

Investors will also have their eye on various earnings releases later in the day, including Meta Platforms and Microsoft, which are among the "Magnificent 7" of U.S. megacaps.

Google parent Alphabet on Tuesday offered a positive note with quarterly revenue that beat estimates.

The run of results - including Apple and Amazon.com numbers due on Thursday - will be crucial to determining whether Wall Street can sustain the optimism around technology and artificial intelligence that has lifted indexes to record highs this year.

On the economic front, Wednesday's advance third-quarter growth figures in the United States are likely to show that the world's largest economy maintained a solid pace of growth, as subsiding inflation and strong wage gains powered consumer spending.

That is likely to contrast with the increasingly dour growth outlook for the euro zone, which has flirted with recession for more than a year now.

The euro is headed for a fall of nearly 3% against the dollar in October, its worst monthly decline since May 2023.

In Asia, Chinese assets fell broadly on Wednesday, as investors braced for a tightly contested U.S. election that could have huge ramifications for China, even as Beijing tries to shore up growth.

News that China is considering approving the issuance of more than 10 trillion yuan ($1.4 trillion) in extra debt in the next few years was overshadowed by the prospect of hefty tariffs in the event of a victory next week by Donald Trump, especially if accompanied by a clean sweep in Congress for his Republican party.

China's currency and equities will bear the brunt of a protectionist shift in the U.S. and are likely to be sensitive to any trade and foreign policy implications in news on the election.

Key developments that could influence markets on Wednesday:

- UK budget

- Various earnings releases including: UBS Group AG, Volkswagen AG, Airbus SE, Meta Platforms, Microsoft

- France, Germany, Euro zone, U.S. preliminary GDP

- U.S. ADP National Employment Report