Plus   Neg

European Shares Set For Weak Start


European stocks are seen opening on a tepid note Wednesday as the possibility of a U.S. government shutdown looms.

Funding for the U.S. government runs out Friday, and some Democratic lawmakers are threatening to vote against spending bills unless Congress addresses their demands on funding priorities and protecting young immigrants.

The dollar fell against its rivals in response to disappointing U.S. trade balance and services sector data released overnight while gold held little changed. Oil prices dropped on API data showing a rise in U.S gasoline stocks and distillate inventories last week.

On the economic front, factory orders figures from Germany and U.S. private sector employment data are slated to be released later in the session.

Asian stocks are broadly lower, with markets in China, Hong Kong, Japan and Taiwan leading regional losses, hit by weaker commodity prices, tumbling bond yields, Brexit uncertainty and delays to Washington's tax reform plans.

Overnight, U.S. stocks closed in the red amid reports about disagreements over a corporate alternative minimum tax in the tax bill. The Dow dropped half a percent, the Nasdaq Composite slid 0.2 percent and the S&P 500 shed 0.4 percent.

European markets also ended Tuesday's session lower. The pan-European Stoxx Europe 600 index, the German DAX, France's CAC 40 index and the U.K.'s FTSE 100 fell between 0.1 percent and 0.3 percent.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT