(RTTNews) - European shares may open on a cautious note on Wednesday, as investors await the start of the U.S. earnings season. Aluminum giant Alcoa Inc. will kick off the earning season in the U.S. later in the day. Firm oil and gold prices may support heavily weighted commodity stocks.

On the economic front, consumer confidence in Great Britain increased in September to its highest level in 17 months, with the Nationwide consumer confidence index rising to 71 in September from an upwardly revised 65 in August. It was the highest reading since April 2008 and the proportion of those surveyed who said they expected an improving economy in the coming six months rose to 39 percent, the highest level since the survey began in May 2004.

Shop prices in Great Britain were higher in September compared to August but were lower than one year earlier for the second straight month, according to survey results released Wednesday by the British Retail Consortium. Shop prices increased 0.1 percent compared to the month before but were 0.1 percent lower than in September 2008, BRC said.

Separately, permanent and temporary staff employment in the U.K increased during September, the latest job report showed Wednesday. However, growth remained subdued compared with the buoyant levels seen prior to the downturn.

A report on Germany’s factory orders for August from the Federal Ministry of Economics and Technology is scheduled for release at 6.00 am ET. Economists expect factory orders to rise 1.1% on a monthly basis, after rising 3.5% in July.

Asian stocks edged higher on Wednesday after the prices for metals and oil advanced on optimism the world’s economy is recovering.

U.S. stocks rose for a second straight session on Tuesday on speculation that third-quarter earnings will top estimates. The jump in stocks on the day also came amid some weakness in the value of the U.S. dollar, which moved lower following reports that some oil producing countries are mulling over the idea of ending the use of the U.S. dollar for oil trading. The Dow closed up by 1.37%, the Nasdaq rose 1.71% and the S&P 500 advanced 1.37%.

Crude oil prices for November delivery finished modestly higher at $70.88 a barrel, up 47 cents on Tuesday after a weaker dollar bolstered the appeal of commodities as an inflation hedge. The American Petroleum Institute said after the U.S. markets closed overnight that distillate fuel inventories fell 2.91 million barrels last week while crude supplies dropped by 254,000 barrels.

In Asian trading on Wednesday, crude oil is now trading firm at $71.45 a barrel ahead of the release of an inventory report from the U.S. Energy Administration Department.

In corporate news, British Airways on Tuesday announced plans to cut 1,700 full-time cabin crew jobs and enforce a two-year pay freeze on the basic pay of cabin crew as a part of its efforts to reduce losses incurred due to the ongoing global economic downturn.

Adecco SA said AXA SA, through its subsidiaries, is holding 5.16% of the share capital of the company.

Alstom SA and Areva SA are among companies that may face hefty EU penalties over allegations they participated in an illegal power transformer cartel, reports suggest.

Otto Beisheim Group, which belongs to one of the co-founders of Metro, is placing a stake of up to 5.2 percent in Metro AG in a private placement to institutional investors.

Swiss insurance company Baloise Holding AG agreed to buy Fortis’ property and casualty operations in Luxembourg for EUR23 million.

Sainsbury(J) Plc said in its trading statement that total sales for second quarter were up 3.2%. Excluding fuel, total sales growth were 6.8%.

Artisan Plc said its full-year pre-tax loss was GBP 8.06 million compared with a profit of GBP 0.59 million in the prior year period.

The European markets rose for the second day on Tuesday, as energy and mining stocks rallied on firmer crude oil and metals prices and banking stocks gained on hopes of economic recovery.

The FTSEurofirst 300 index of pan-European blue chips closed 2.22% higher, while the narrower DJ Stoxx 50 index rose 2.08%. Around Europe, the U.K.’s FTE 100 index rose 2.26%, France’s CAC 40 index surged up 2.59% and Germany’s DAX index climbed 2.70%.

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