Europe Factors to Watch-Shares set to track U.S. rally ahead of Fed
PARIS, Sept 17 (Reuters) - European stocks were set to rise on Wednesday, bouncing back from two-week lows and tracking a rally on Wall Street spurred by a report which shifted investor expectations for the Federal Reserve's policy statement due on Wednesday.
At 0620 GMT, futures for Euro STOXX 50, for UK's FTSE 100, for Germany's DAX and for France's CAC were up 0.2-0.3 percent.
After early losses in New York on Tuesday, major indexes turned positive, with traders citing a report in the Wall Street Journal as indicating the Fed could be less hawkish than markets have been expecting.
The Fed began its two-day policy meeting on Tuesday, and while it has said it doesn't expect to raise rates until 2015, recent strong economic data has led Fed officials to acknowledge they may need to move sooner than they previously anticipated.
French stocks will be in the spotlight after Prime Minister Manuel Valls headed off a backbench revolt against his government late on Tuesday, winning a confidence vote after promising to preserve France's social model while pushing pro-business reforms intended to boost economic growth.
"It was a close call but it's enough to stabilise the political situation in the short term. This is essential as the government needs to go ahead with various reforms," said Alexandre Baradez, chief market analyst at IG France.
"However, there are still plenty of question marks over France, particularly on the pace of the reforms, while Moody's is set to review its rating on the country by the end of the week."
UK equities will also be in focus after three different opinion polls showed Scottish supporters of staying in the United Kingdom are 4 percentage points ahead of secessionists with just a day to go before Scots vote in an independence referendum.
Resource-related shares will be eyed after media reports said China's central bank is injecting a combined 500 billion yuan ($81.35 billion) of liquidity into the country's top banks, a sign that authorities are stepping up efforts to shore up a faltering economy. Continuación...