European Shares Poised For Firm Start
European stocks are likely to open on a firm note Wednesday, even as a cautious undertone may prevail amid lingering worries over the Russia-Ukraine conflict and uncertainty over the Fed’s rate hike path.
Investors also remain apprehensive about the economic and corporate earnings outlook.
After Ukraine claimed that about 400 Russian soldiers were killed in an attack on military quarters in Makiivka on Sunday, Russia acknowledged its worst military losses since the war in Ukraine began.
Russia’s defense ministry has so far conceded that 89 people were killed in the Ukrainian attack on New Year’s Eve.
Asian markets traded mostly higher on optimism that the latest COVID-19 wave in China may have already peaked. Japan’s Nikkei fell over 1 percent as trading resumed after a long holiday weekend.
The dollar eased slightly ahead of the release of the Fed minutes later in the day, which could impact the outlook for interest rates.
The yen held steady amid efforts by the Bank of Japan to depress yields on government debt.
Gold edged higher, drawing support from recession worries after former New York Federal Reserve President William Dudley said a recession is likely because of what the Fed has to do.
Oil prices extended losses after falling more than 4 percent in the U.S. trading session on fuel demand concerns.
U.S. stocks fell overnight, and the dollar jumped, as caution set ahead of key macroeconomic data due this week that could offer additional clues on when and where interest rates might peak.
The Dow finished marginally lower, while the tech-heavy Nasdaq Composite shed 0.8 percent and the S&P 500 eased 0.4 percent.
European stocks closed on a firm note Tuesday to extend gains from the previous session, as Chinese state-media downplayed the seriousness of the COVID-19 pandemic and data showed German consumer inflation slowed in December.
The pan European STOXX Europe 600 rallied 1.2 percent. The German DAX rose 0.8 percent, France’s CAC 40 index gained 0.4 percent and the U.K.’s FTSE 100 climbed 1.4 percent.
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