European Shares Likely To Open On Subdued Note

(RTTNews) - European stocks are seen opening on a sluggish note Friday as uncertainty persists over Fed rate cuts and elevated technology valuation concerns loomed.

Following the U.S. government reopening, the focus has not shifted back to inflation and growth risks.

In the absence of reliable economic data, the chances of a December Fed rate cut have plunged to 50.7 percent from 62.9 percent on Wednesday, according to the CME FedWatch Tool.

The release of reports on U.S. producer prices and retail sales along with Kansas City Federal Reserve Bank President Jeffrey Schmid's speech on monetary policy and the economic outlook will be in the spotlight later today.

Dallas Federal Reserve Bank President Lorie Logan and Atlanta Federal Reserve Bank President Raphael Bostic are also scheduled to speak at separate events.

Meanwhile, media reports suggest that the Trump administration is readying substantial tariff cuts to help reduce high food prices.

Elsewhere, the Financial Times reported that Sir Keir Starmer and Rachel Reeves have ditched their manifesto-busting plan to increase income tax rates ahead of the upcoming Budget.

Asian markets were broadly lower as a slew of Chinese data signalled a further loss of momentum in October.

Data showed industrial production rose 4.9 percent year-on-year in the month, falling shy of expectations for an increase of 5.5 percent and down from 6.5 percent in September.

Retail sales were up 2.9 percent - exceeding expectations for 2.7 percent after rising 3.0 percent in the previous month.

Fixed asset investment fell 1.7 percent from last year, missing forecasts for a decline of 0.9 percent following the 0.5 percent drop a month earlier.

The jobless rate came in at 5.1 percent versus expectations for 5.2 percent. House prices fell 2.2 percent year-on-year, matching September's decline.

The dollar held losses, helping gold edge up toward $4,200 an ounce. Oil prices jumped nearly 2 percent after Novorossiysk was attacked by drones, damaging the oil terminal at the Sheshkharis transshipment complex and causing a fire.

U.S. stocks tumbled overnight, with the major indexes logging their weakest session in a month, as valuation concerns returned to the fore and mixed comments from Fed officials prompted investors to dial back expectations of interest-rate cuts.

The Congressional Budget Office estimated a delay in $50 billion spending and a 1.5 percentage point drop in GDP due to the shutdown.

Adding to the economic uncertainty, White House press secretary Karoline Leavitt told reporters that the October jobs and consumer price inflation reports are "likely never being released" as a result of the shutdown.

Separately, Kevin Hassett, President Trump's top economic advisor, said the October jobs reports will be released without a reading of the unemployment rate.

The tech-heavy Nasdaq Composite plummeted 2.3 percent while the S&P 500 and the Dow both fell around 1.7 percent.

European stocks closed lower on Thursday as the longest government shutdown in United States history ended but the final agreement left major policy questions unresolved.

The pan European Stoxx 600 shed 0.6 percent. The German DAX lost 1.4 percent, France's CAC 40 slid 0.1 percent and the U.K.'s FTSE 100 gave up 1.1 percent.