European stocks look set to extend losses on Wednesday as investors await inflation report and government debt sales in the U.S. as well as a scheduled speech by Bank of England Governor Andrew Bailey for directional cues.
The U.S. CPI report due later in the day is forecast to show prices continued to increase in April.
The U.S. 10-year Treasury yield jumped to more than a one-week high, helping lift the dollar and weighing on gold.
Oil traded flat after rising overnight as OPEC stuck to its prediction of a strong recovery in world oil demand in 2021.
Asian markets hit their lowest levels in seven weeks, with Taiwan’s benchmark index falling more than 4 percent amid a diplomatic spat with China and further Covid-19 curbs.
As India battles a vicious second coronavirus wave with more than 3 lakh new cases every day, the World Health Organization (WHO) said that the vaccines, therapeutics and diagnostics “continue to be effective” against the B.1.617 variant of COVID-19 that was first identified in India.
Quarterly national accounts and foreign trade from the U.K. are due later in the day, headlining a light day for the European economic news.
U.S. stocks ended lower overnight as positive data on job openings added to concerns over inflation.
The tech-heavy Nasdaq Composite plunged as much as 2.2 percent before ending 0.1 percent lower, while the Dow dropped 1.4 percent and the S&P 500 shed 0.9 percent.
European stocks ended Tuesday’s session sharply lower, with travel, retail and technology stocks among the worst hit.
The pan European Stoxx 600 gave up 2 percent. The German DAX fell 1.8 percent and France’s CAC 40 index lost 1.9 percent while the U.K.’s FTSE 100 tumbled 2.5 percent.
European Shares Set To Extend Losses As Inflation Worries Persist
2021-05-12 05:25:22
