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European Shares Set For Steady Open

stockmarkets aug17 07jul21 lt

European stocks are set to open higher on Wednesday, even as a cautious undertone may prevail as investors await the minutes of the Federal Reserve's latest monetary policy meeting for clues as to when the U.S. central bank will begin to taper its pandemic-induced bond-buying spree.

Destatis is slated to issue Germany's industrial production data for May later in the day. Economists expect industrial output to grow 0.5 percent month on month, in contrast to a 1 percent fall in April.

UK Halifax house price data is also due. Economists see house prices climbing 1.2 percent month on month in June, slower than the 1.3 percent rise in May.

Asian markets fell broadly and gold slipped from a three-week high as a bout of risk aversion boosted bonds and the dollar.

Treasuries held an advance while crude oil prices steadied after a steep drop in the previous session amid uncertainty over OPEC's next move.

U.S. stocks ended broadly lower overnight on inflation fears and concerns about what happens with the Fed tapering. Growth in the services sector slowed in June and oil prices reversed earlier gains, adding to downbeat sentiment.

The tech-heavy Nasdaq Composite edged up 0.2 percent to reach a new record closing high, while the S&P 500 eased 0.2 percent to end a seven-day winning streak and the Dow dropped 0.6 percent.

European stocks fell from two-week highs on Tuesday as weak German data and concerns surrounding the delta variant of the coronavirus rekindled concerns of a slow recovery from the pandemic.

The pan European Stoxx 600 gave up half a percent. The German DAX tumbled 1 percent, while France's CAC 40 index and the U.K.'s FTSE 100 both shed around 0.9 percent.

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