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European stocks set to inch higher amid major earnings, uncertainty over U.S. relief bill

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European stocks are poised for a cautious open Wednesday as investors digest another round of major corporate earnings reports, while uncertainty abounds over progress on a new U.S. coronavirus relief bill.

European markets look set for a mixed handover from Asia Pacific, where South Korea's Kospi jumped more than 1.1% by afternoon trade to lead gains amid a flat session.

Investors also have an eye on negotiations in Washington over a new U.S. coronavirus aid package, where White House negotiators on Tuesday vowed to work "around the clock" with Democratic counterparts to get a deal over the line by the end of the week.was changing hands at around $2,024 per troy ounce around an hour before the European open.

July's final Markit composite and services PMI readings for the euro zone are expected at 9 a.m. London time and will offer further insight into the state of the bloc's economic recovery. A sharper-than-expected gain in the manufacturing PMI at the start of the week helped stocks close out Monday's session on the front foot. June's retail sales for the euro zone are also due at 10 a.m.

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