European Shares Likely To Open On Steady Note Before US Inflation Test

(RTTNews) - European stocks look set to open on a firm note Wednesday as investors await U.S. CPI data and Fed Chair Jerome Powell's testimony before the House Financial Services Committee later in the day for more insight on interest rates, trade tariffs and economic outlook.

Also, U.S. President Donald Trump could sign an order today to require that U.S. tariffs on imports match the tax rates charged by other countries.

On the geopolitical front, Israel sent more soldiers to the Gaza area and cancelled leave for troops already there after Hamas delayed the planned hostage release, saying that the language of threats has no value and further complicates matters.

"Trump must remember that there is an agreement that must be respected by both parties, and this is the only way to return the prisoners," Hamas official Sami Abu Zuhri told AFP.

Treasury yields held gains, and the dollar retreated from its recent highs while gold slipped below $2,900 per ounce after climbing to a fresh peak above $2,942 an ounce in the previous session.

Oil edged lower after industry data showed a build in U.S. inventories.

Asian markets were mixed, with Hong Kong's Hang Seng index rising over 1 percent as Apple-Alibaba AI partnership lifted tech stocks.

U.S. stocks fluctuated before eventually ending narrowly mixed overnight as bond yields climbed on Powell's remarks signaling a patient path for rate cuts.

In his first appearance before Congress since the inauguration, Fed Chair Powell indicated the central bank was in no rush to adjust its policy stance and described the economy as "strong" and the labor market as "solid."

He avoided any mention of the economic consequences of President Trump's tariff or trade policies.

The tech-heavy Nasdaq Composite slid 0.4 percent, while the S&P 500 finished marginally higher and the Dow rose 0.3 percent.

European stocks ended at a record high on Tuesday as the European Union pledged countermeasures against Trump's tariffs on metals.

The pan European STOXX 600 advanced 0.2 percent. The German DAX gained 0.6 percent, France's CAC 40 added 0.3 percent and the U.K.'s FTSE 100 edged up by 0.1 percent.