European Shares May Begin On Soft Note

RTTNews | 251 일 전
European Shares May Begin On Soft Note

(RTTNews) - European stocks may open on a sluggish note Wednesday after Russia and the U.S. concluded Ukraine peace talks in Saudi Arabia.

U.S. President Donald Trump described the first day of talks as "very good" and said Russia wants "to stop the savage barbarianism".

Volodymyr Zelensky has said Kyiv will not accept the results of U.S.-Russia talks held "behind Ukraine's back".

Concerns over economic growth due to uncertainty surrounding Trump's tariff plans and expectations for fewer rate cuts may also keep investors on edge.

Philadelphia Fed President Patrick Harker, Governors Michelle Bowman and Christopher Waller and San Francisco Fed President Mary Daly all noted on Tuesday that there is no need to make policy adjustments until more visible progress is made toward bringing inflation down to the Fed's 2 percent goal.

European Central Bank (ECB) policymaker and Bundesbank President Joachim Nagel also warned that Trump's tariffs will be more vulnerable for Germany.

Asian markets were mixed in the face of Trump's latest tariff threats on auto, semiconductor and pharmaceutical imports.

Trump told reporters on Tuesday that sectoral tariffs on pharmaceuticals and semiconductor chips would start at "25 percent or higher, and it will go very substantially higher over the course of a year." He intends to impose similar tariffs on autos as soon as April 2.

The dollar held firm in Asian trade and gold retreated from recent record highs while oil extended gains for a third straight session, supported by prospects of lessened supply.

U.K. inflation figures and a report on U.S. housing starts may attract attention later in the day along with the minutes of the latest Federal Reserve meeting.

U.S. stocks fluctuated before ending on a firm note overnight as focus shifted to Russia-Ukraine talks, upcoming Fed minutes and big retail earnings.

In economic news, business activity for manufacturers in New York State unexpectedly rebounded in February, while confidence among homebuilders fell sharply in the month due to tariff concerns, elevated mortgage rates and high housing costs, separate set of data revealed.

The S&P 500 rose 0.2 percent to reach a new record closing high while the tech-heavy Nasdaq Composite and the Dow both finished marginally higher.

European stocks closed at a record high on Tuesday, with banking and defense stocks among top gainers.

The pan European STOXX 600 gained 0.3 percent. The German DAX and France's CAC 40 both edged up by 0.2 percent while the U.K.'s FTSE 100 ended flat with a negative bias.

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