Market Buzz: Investors look to EU and US for drivers

Following losses on US floors and negative sentiment in Asia, Russian stocks started off Wednesday in the red. Later in the day, investors will be looking for drivers in news from Europe and the US.

Russian floors closed Tuesday’s trading session with slightly gains: The MICEX advanced 0.3 percent to 1341.62 and the RTS was up 0.26 percent to 1322.39.

Stock markets in Europe ended Tuesday higher, rebounding after traders strengthened their positions ahead of hotly anticipated data from the US later this week. The UK's FTSE 100 added 0.51 percent to close at 6,558.58 points, while Germany's DAX 30 drew 0.12 percent to 8,295.96 points and the French CAC 40 gained 0.13 percent to end at 3,925.83.

The eurozone will release official data on retail sales on Wednesday, with Germany, Italy, France and the eurozone as a whole releasing service sector PMI reports. Germany’s PMI indicator is expected to remain unchanged from April’s level of 49.8 points. The eurozone’s PMI is also not expected to change at 47.5 points.

US stocks closed lower Tuesday amid continuing worries over the future of the Fed's bond-buying policy. The Dow Jones slumped 0.50 percent to 15,177.54 points, the S&P 500 closed down 0.55 percent at 1,631.38 points. And the Nasdaq lost 0.58 percent to close at 3,445.26 points.

On Wednesday, the US will release the ADP nonfarm payroll report on private-sector job creation. Today’s report will be a preview of Friday’s official payroll update from the government, and will be closely analyzed for improvements over the previous raft of disappointing economic news.

US government updates on factory orders and crude oil reserves are scheduled for release on June 5. The Institute of Supply Management will also release a report on US service-sector activity (ISM PMI), a leading economic indicator that is expected to help drive market growth.

Asian stocks traded mostly lower on Tuesday as investors slashed equity amid growing concerns over the rumored end to the US Fed’s bond-buying program. Japan's Nikkei 225 slid 1.8 percent to 13,295.89, signaling disappointment over Prime Minister Shinzo Abe's vague unveiling of the next stage of his anti-deflation ‘Abenomics’ program.

Hong Kong's Hang Seng fell 1 percent to 22,048.84, while South Korea's Kospi declined 1.1 percent to 1,968.52. Australia's S&P/ASX 200 dropped 1 percent. Benchmarks in Singapore, Indonesia, Thailand and the Philippines also fell. Shares in Mainland China traded mixed.

Brent oil is currently trading slightly lower at $102.80, down 0.03 percent. WTI is in the black, up 0.1 percent to $93.