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European Shares Seen Lower As Dollar Rally Stalls

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European stocks are seen opening slightly lower on Wednesday as the dollar rally fizzled out and oil extended losses on signs of higher output.

The dollar stepped back from a 1 1/2-month high against a basket of currencies as investors ponder over the likely successor of Fed Chair Janet Yellen whose term ends in February. Oil hovered near two-week lows while gold held near seven-week lows.

Asian stocks are mostly higher after U.S. stocks hit fresh record highs overnight on optimism about the economic outlook and the prospects for Republican tax reform.

In economic releases, shop prices in the United Kingdom fell 0.1 percent year-on-year in September, the British Retail Consortium said - threatening to emerge from deflation for the first time in four years. The September reading follows the 0.3 percent decline in August.

Investors await speeches by Federal Reserve officials, the U.S. nonfarm payrolls report, foreign-exchange reserves data from China and minutes of the last ECB meeting this week for further direction.

Overnight, the Dow Jones Industrial Average rose 0.4 percent to extend its winning streak for a fifth straight session, while the S&P 500 and the Nasdaq Composite edged up around 0.2 percent each.

European markets eked out modest gains on Tuesday as Catalonia worries eased and the Bank of England said that Brexit poses risks to the ability of British companies to borrow from European banks.

The pan-European Stoxx Europe 600 index rose 0.2 percent. France's CAC 40 index inched up 0.3 percent and the U.K.'s FTSE 100 added 0.4 percent while the German market was closed for a holiday.

by RTT Staff Writer

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