logo
Plus   Neg
Share
Email

European Shares Seeking Rebound After Recent Heavy Losses

stockrebound-020718-lt.jpg

European stocks are likely to open higher on Wednesday after a few days of battering on concerns over rising inflation and the potential for higher interest rates in the U.S.

U.S stocks rebounded from a violent selloff to post the biggest rally in 15 months overnight as investors cheery picked beaten-down stocks.

U.S. stock futures are declining while Asian shares pared early gains to turn mixed. The dollar held firm against the yen but trimmed gains against the euro and pound.

Oil prices rallied on data showing a fall in U.S. crude inventories last week, while gold rebounded from over three-week low.

Industrial production data from Germany and economic forecasts from euro area are due later in the day, headlining a busy day for the European economic news.

Germany's industrial production is expected to fall 0.6 percent month-on-month, reversing November's 3.4 percent increase.

The National Institute of Economic and Social Research said earlier today that It expects the U.K. economy to expand more than previously projected this year, primarily due to a more positive outlook for global growth.

The think tank lifted the growth outlook for 2018 to 1.9 percent from 1.7 percent, citing positive global outlook and progress in Brexit negotiations.

Overnight, U.S. stocks ended a volatile session sharply higher, led by technology, materials and consumer discretionary companies.

The Dow Jones Industrial Average climbed 2.3 percent, the tech-heavy Nasdaq rallied 2.1 percent and the S&P 500 jumped 1.7 percent.

European markets closed sharply lower on Tuesday as investors fretted about rising inflation and higher interest rates. The pan-European Stoxx 600 suffered a seventh straight decline to close 2.4 percent lower.

The German DAX tumbled 2.3 percent and France's CAC 40 index shed 2.4 percent while the U.K.'s FTSE 100 dropped 2.6 percent to suffer its biggest single-day fall since the Brexit vote.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT