European Shares Seen Opening Mixed
European stocks are seen opening narrowly mixed on Tuesday as U.S. stock futures turned positive after declining earlier.
The dollar held near 20-year highs, while gold edged higher as benchmark 10-year U.S. Treasury yields extended their decline after pulling back from the highest level in three and half years in the previous session.
Oil prices extended losses on demand worries after tumbling around 6 percent in the U.S. trading session.
Asian markets followed Wall Street higher as investors fretted about the impact of high inflation on global growth.
Chinese stocks were seeing modest gains and Hong Kong’s Hang Seng index cut initial losses after the Chinese government announced rent cuts and other aid for small businesses in a new effort to boost economic growth.
Germany’s ZEW economic confidence survey results are due later in the session. The economic sentiment index is seen at -42.0 in May versus -41.0 in April.
It’s a quiet day on the U.S. economic front, with trading likely to be impacted by reaction to comments by several Fed officials.
Overnight, U.S. stocks sank in a widespread selloff amid concerns over the Fed’s ability to combat high inflation and avoid an outright recession.
The tech-heavy Nasdaq Composite plummeted 4.3 percent to reach its lowest closing level since November 2020, while the Dow lost 2 percent and the S&P 500 tumbled 3.2 percent to hit one-year closing lows.
European stocks ended deep in the red on Monday on concerns about rising interest rates, slowing Chinese growth and a tightening lockdown in Shanghai.
The pan European Stoxx 600 plunged 2.9 percent. The German DAX declined 2.2 percent, France’s CAC 40 index plummeted 2.8 percent and the U.K.’s FTSE 100 gave up 2.3 percent.
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