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European Shares To Open On Cautious Note

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European stocks are seen opening largely unchanged on Thursday as U.S. Treasury yields fell and Brent crude futures hovered near two-week low amid competing signals of lower U.S. inventories and stronger output.

Spanish stocks are likely to be in focus again after the regional government of Catalonia moved to declare independence from Spain.

The dollar inched up after sliding overnight in the wake of speculation that Jerome Powell, viewed as dovish, is a frontrunner in the race to get the chairmanship of the Fed.

Asian stocks are mixed in holiday-thinned trade amid further upheaval in Spain. Markets in China, Hong Kong and South Korea are closed for holidays.

Minutes of the ECB's Sept policy meeting are slated to be released later today, with investors looking for clues on the timing of QE tapering.

Meanwhile, the U.S. government's non-farm payrolls report due out Friday is likely to be affected by the impact of hurricanes on southern states.

Overnight, U.S. stocks eked out modest gains to hit record highs as private jobs and services sector data painted a mostly positive picture of the world's largest economy. The Dow and the S&P 500 inched up around 0.1 percent while the Nasdaq Composite ended largely unchanged with a positive bias.

European markets closed slightly lower on Wednesday as investors fretted over a constitutional crisis in Spain and the European Central Bank warned of higher capital levels and possible sanctions if banks fail to meet its new guidance on bad-loan provisioning.

The pan-European Stoxx Europe 600 index slid 0.1 percent. France's CAC 40 and the U.K.'s FTSE 100 finished slightly lower, while the German DAX rose half a percent as trading resumed after a bank holiday.

by RTT Staff Writer

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