logo
Plus   Neg
Share
Email

European Stocks Seen Flat To Higher At Open

stockmarkets-dec27_09oct19-lt.jpg

European stocks are likely to open little changed on Wednesday as the U.S.-China tradeoff escalates, weighing on global economic growth.

Asian markets fell the most in a week as hopes for a breakthrough in U.S-China trade talks waned.

The dollar steadied, U.S. two-year Treasury yields fell and the curve steepened after U.S. Federal Reserve Chair Jerome Powell signaled openness to more rate cuts amid rising global risks.

Oil prices slipped for a third consecutive session as the new leaders of the International Monetary Fund and World Bank warned of a deteriorating global economic outlook.

Overnight, U.S. stocks slumped after the Trump administration imposed visa restrictions on Chinese officials over abuses of Muslim minorities in the Xinjiang region.

Meanwhile, Fed Chairman Jerome Powell flagged openness to further rate cuts and indicated the central bank intends to resume increasing the size of its balance sheet in order to ensure money markets function smoothly.

The Dow Jones Industrial Average dropped 1.2 percent, the tech-heavy Nasdaq Composite shed 1.7 percent and the S&P 500 lost 1.6 percent.

European markets ended lower on Tuesday on waning optimism about U.S.-China trade talks after a report in the South China Morning Post said China is toning down expectations ahead of the high-level discussions with the U.S.

The pan European Stoxx 600 retreated 1.1 percent. The German DAX gave up 1.1 percent, France's CAC 40 index declined 1.2 percent and the U.K.'s FTSE 100 shed 0.8 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT
>