A recovery by global stocks proved short-lived as warnings over a slowing European auto sector soured an upbeat mood, while Wall Street was set for a slightly lower open after enjoying its best session in eight months the previous day.
Goldman Sachs analysts said slowing car demand in China and new fuel consumption regulations were hurting investors' sentiment toward European autos stocks and warned this results season could be challenging, hitting shares in the sector on Wednesday.
Forecast-beating U.S. company earnings improved the mood on world equity markets on Wednesday, as Asian and European shares put aside concerns on global growth and trade and took their cue from Wall Street's best one-day rise in eight months.
U.S. stocks surged more than 2 percent on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data, as equities rebounded from a recent sharp sell-off.
U.S. stocks surged, sending the Dow industrials up more than 500 points, as upbeat economic and earnings reports provided investors with new evidence that the domestic expansion remains on a strong footing.
Asian equities got some much needed relief on Wednesday after upbeat U.S. earnings reports drove a rebound on Wall Street and helped restore a little confidence in emerging market stocks and currencies.