European Shares To Open On Cautious Note Amid Fed Uncertainty

European Shares To Open On Cautious Note Amid Fed Uncertainty

November 15, 2023

European stocks may open flat to slightly lower on Thursday as investors fret over the trajectory of the U.S. economy and the outlook for rates.

Federal Reserve Vice Chair Philip Jefferson on Wednesday said that high uncertainty could warrant an aggressive, rather than a gradual, policy response.

Fed Chair Jerome Powell didn’t comment on monetary policy or the economic outlook in prepared remarks at a conference on Wednesday. He will appear again on a panel discussing monetary policy challenges later today.

Asian stocks traded mostly higher, with Japanese markets leading regional gains on hopes that global interest rates may have peaked.

Traders ignored inflation data from China indicating sustained deflationary pressures.

China’s consumer price inflation declined 0.2 percent last month following two months of near-zero inflation, while producer prices dropped 2.6 percent to extend declines for the 13th consecutive month, data showed earlier today.

The dollar index eased, and gold hovered near a more than three-week low while oil prices recovered slightly after falling more than 2 percent overnight to hit their lowest since mid-July on concerns over waning demand in the U.S. and China.

U.S. stocks fluctuated before ending mixed overnight and Treasury yields pulled back as the Treasury Department’s auction of $40 billion worth of ten-year notes attracted average demand.

The Dow eased 0.1 percent while the S&P 500 and the tech-heavy Nasdaq Composite finished marginally higher to extend their winning streak to eight and nine sessions, respectively.

Entertainment giant Disney announced better-than-expected earnings results and unveiled plans to cut an extra $2 billion in expenses after the U.S. closing bell.

European stocks closed higher on Wednesday as investors reacted to strong earnings reports and hawkish comments from Fed officials.

The pan European STOXX 600 gained 0.3 percent. The German DAX rose half a percent and France’s CAC 40 climbed 0.7 percent while the U.K.’s FTSE 100 slipped 0.1 percent.

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