European Shares To Open On Flat Note After Trump Speech


European stocks are likely to open on a flat note on Wednesday after U.S. President Donald Trump delivered his second State of the Union address before a divided Congress and the American electorate.

His address made no mention of the longest government shutdown in history, though he urged Democrats and Republicans to find a compromise by a February 15 deadline.

Trump renewed his call for a wall on the southern U.S. border saying it is needed to stem illegal immigration and smuggled drugs. Trump also did not have anything significant on U.S-China trade front.

Asian stocks remain broadly higher after Trump announced he would meet North Korean leader Kim Jong Un in Vietnam at the end of February as part of a bold new diplomacy that has already yielded tangible results.

Trading activity remains thin across the region as markets in China, Hong Kong, Korea, Malaysia, Singapore and Taiwan remain closed for holidays.

The dollar held steady against its peers while oil edged higher for the first time in three sessions amid OPEC cuts and U.S. sanctions against Venezuela.

Overnight, U.S. stocks rose to close at their best levels in near two months, with largely upbeat corpora earnings results underpinning sentiment ahead of President's State of the Union address.

The Dow and the tech-heavy Nasdaq Composite rose around 0.7 percent while the S&P 500 gained half a percent.

European markets ended Tuesday's session on an upbeat note as investors reacted to a flurry of corporate earnings results.

The pan European Stoxx 600 climbed 1.4 percent to hit a nine-week high. The German DAX and France's CAC 40 index both surged around 1.7 percent while the U.K.'s FTSE 100 rallied 2 percent.