European Shares Seen Lower Amid Rate-hike Uncertainty
European stocks are likely to open lower on Tuesday as inflation and rate-hike concerns dominate headlines.
Doubts about whether the Bank of England will raise interest rates in December and concerns over the spread of Covid-19 in Europe may also weigh on sentiment ahead of the U.S. and Eurozone manufacturing and service data due out later in the day.
Further, the Fed minutes from its latest meeting, U.S. GDP and initial jobless claims data will be released on Wednesday ahead of Thursday’s Thanksgiving holiday.
As infections rise nationwide, Dr. Anthony Fauci is urging all Americans to use Covid-19 as an excuse to skip Thanksgiving with horrible relatives.
Asian markets traded mixed, with Tokyo closed for a holiday. Gold hovered near a two-week low as Treasury yields and the dollar jumped on concerns over quicker policy tightening following Powell’s renomination to head the Federal Reserve.
Oil prices slipped after reports that Japanese and Indian officials are working on ways to release national reserves of crude oil in tandem with the United States and other major economies.
An OPEC+ delegate was quoted saying on Monday that the global oil producing alliance might adjust its production plans if consuming countries released their reserves to get more supply on the market.
U.S. stocks ended mixed overnight after President Joe Biden nominated Jerome Powell for a second term as Fed chairman and current Fed Governor Lael Brainard as vice chair.
The S&P 500 eased 0.3 percent and the tech-heavy Nasdaq Composite shed 1.3 percent as Treasury yields jumped after the announcement. The Dow ended flat with a positive bias.
European stocks also ended mixed on Monday despite rising coronavirus cases across Europe and fresh restrictions on movements.
The pan European Stoxx 600 eased 0.1 percent. The German DAX dipped 0.3 percent and France’s CAC 40 index slid 0.1 percent while the U.K.’s FTSE 100 rose 0.4 percent.
Source: Read Full Article
