European Shares Seen Broadly Higher, Trump's Tariffs And Tax Bill In Focus

(RTTNews) - European stocks may open broadly higher on Wednesday as investors monitor progress on trade negotiations and assess the economic impact of U.S. President Donald Trump's massive tax-cut and spending bill, which may face additional hurdles in the House ahead of a July 4 deadline set by Trump.

Some House Republicans have voiced concern that the Senate version of the bill would add too much to the deficit.

U.S. stock futures edged higher ahead of the release of the ADP jobs report, with economists expecting 120,000 new jobs in June, up from 37,000 in May. The all-important June's employment report will be out on Thursday morning.

The European economic calendar remains light, with unemployment figures from Spain, Italy and the wider European region likely to garner some attention later in the day.

Asian markets were mixed as investors await more clarity on tariffs ahead of the July 9 deadline.

Trump hardened his threat to raise tariffs on countries that fail to agree a trade deal by July 9.

He escalated trade pressure on Japan with tariff threats over rice and cars but U.S. Treasury Secretary Scott Bessent signaled there may be some extensions to wrap up major pacts by the Labour Day holiday.

The U.S. dollar languished near 3-1/2-year lows while Treasuries were steady after yields rose on Tuesday.

Gold was firm after climbing 2 percent over the previous two sessions. Oil prices were marginally higher ahead of an OPEC+ meeting to decide August output.

U.S. stocks ended mixed overnight as the Senate narrowly voted to approve President Donald Trump's massive tax cuts and spending bill and Fed Chair Jerome Powell once again reiterated the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering rates.

Two-year Treasury yield rose to a near one-week high.as a measure of U.S. manufacturing activity improved in June and job openings increased unexpectedly in May.

The narrower Dow jumped 0.9 percent to reach its best closing level in over four months, while the S&P 500 slid 0.1 percent for its first loss in four days. The tech-heavy Nasdaq Composite declined 0.8 percent.

European stocks closed broadly lower on Tuesday as investors monitored the European Central Bank's annual forum in Sintra, Portugal.

The pan-European STOXX 600 eased 0.2 percent. The German DAX lost 1 percent and France's CAC 40 finished marginally lower while the U.K.'s FTSE 100 rose 0.3 percent.