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European Shares Set For Tepid Start Ahead Of Fed Outcome

stockmarkets jan18 28jul21 lt

European stocks are seen opening lower on Wednesday as investors await a statement from the Fed policy meeting and a press conference by Fed chair Jerome Powell due tonight for clues on the timing of stimulus tapering.

Asian markets fell broadly, with China jitters and a four-week extension of a coronavirus lockdown in Sydney adding to market unease.

Overall losses were limited after tech giants Apple, Microsoft and Google reported record-breaking quarterly sales and profits.

Gold held steady near $1,800 level amid a drop in the U.S. dollar index as the International Monetary Fund maintained its 6 percent global growth forecast for 2021. The U.S. 10-year bond Treasury yields retreated to 1.23 percent.

Oil prices rose slightly after industry data showed U.S. crude and product inventories fell more sharply than expected last week.

House price data from the U.K. and consumer sentiment survey results from Germany and France are due later in the session, headlining a busy day for the European economic news.

Overnight, U.S. stocks fell from record highs to snap a five-session winning streak and real U.S. bond yields hit all-time lows as investors fretted over a sell-off in Chinese shares and awaited cues from the Fed meeting.

The Dow dipped 0.2 percent and the S&P 500 shed half a percent while the tech-heavy Nasdaq Composite index lost 1.2 percent ahead of earnings reports from some of the most valuable technology companies.

European stocks ended Tuesday's session firmly in the red amid Beijing's widening crackdown on tech and education companies.

The pan European Stoxx 600 slipped half a percent. The German DAX dropped 0.6 percent, France's CAC 40 index gave up 0.7 percent and the U.K.'s FTSE 100 eased 0.4 percent.

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