European stocks are likely to open on a flat note Thursday as traders weigh risks to the global economic recovery from rising inflation and await news on who will be the next chair of the Federal Reserve.
U.S. President Joe Biden told reporters on Tuesday to expect the announcement of a nominee for Fed chair in “the next four days.”
Asian markets fell broadly on worries that global central banks will have to tighten their monetary policies quicker than anticipated.
The dollar hovered below a 16-month peak and U.S. bond yields retreated from a three-week high despite a lukewarm auction of 20-year notes. Gold was flat to slightly lower in Asian trade.
Oil extended overnight losses on the prospect of the U.S. and other consumers like China and Japan tapping strategic reserves. Media reports suggest that China is working on a crude release.
It’s a quiet day ahead on the Eurozone’s economic calendar, though ECB members Panetta, Fernandez-Bollo and Lane are scheduled to speak later in the day.
Across the Atlantic, trading may be impacted by reaction to reports on weekly jobless claims, Philadelphia-area manufacturing activity and leading economic indicators.
U.S. stocks ended lower overnight amid inflation fears, supply chain concerns and uncertainty over early rate hikes by the Federal Reserve.
The Dow dropped 0.6 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both eased around 0.3 percent.
European stocks ended on a flat note Wednesday as rising inflation and a fresh surge in Covid-19 cases in Europe increased the downside risks to economic recovery.
The pan European Stoxx 600 edged up 0.1 percent. The German DAX and France’s CAC 40 index saw marginal gains, while the U.K.’s FTSE 100 dipped half a percent as soaring inflation boosted rate-hike bets.
Business News
European Shares May See Flat Start As Inflation Worries Persist
2021-11-18 05:30:24
