European Shares Seen Broadly Lower With Tech Stocks In Focus

(RTTNews) - European stocks are seen opening broadly lower on Wednesday, though U.K. markets may open on a steady note as oil extended overnight gains on signs of tight supply from Russia and OPEC members.

Technology stocks may come under selling pressure due to inflation concerns and disappointment in Nvidia's new technology.

Asian stocks traded mixed, with mainland Chinese and Hong Kong markets falling sharply, pressured by concerns about China's faltering economy and tariff threats from the U.S. President-elect Donald Trump.

China's yuan dipped to a 16-month low despite the country's central bank setting stronger-than-expected guidance.

Seoul stocks led regional gains despite Samsung Electronics missing profit expectations.

Treasuries held steady after falling across the curve in the previous session. The U.S. government's monthly auction of 10-year notes drew the highest yield since 2007 after the release of upbeat U.S. service-sector activity and job openings data.

Gold was under pressure from rising U.S. Treasury yields and a firmer dollar. Fed Bank of Atlanta President Raphael Bostic said on Tuesday that officials should be cautious with policy decisions, given uneven progress on lowering inflation.

In economic releases, Eurozone economic sentiment survey results and reports on French consumer confidence, German factory orders and retail sales may garner attention later in the day.

Across the Atlantic, trading may be impacted by reaction to the release of minutes from the latest Federal Reserve meeting,

U.S. stocks fell overnight as inflation and interest rate concerns returned to the fore after the release of upbeat economic data.

The tech-heavy Nasdaq Composite slumped 1.9 percent, the S&P 500 lost 1.1 percent and the narrower Dow shed 0.4 percent as the yield on the benchmark ten-year note surged to an eight-month high.

U.S. service sector growth picked up in December, a measure of prices paid for inputs rose to near a two-year high, and job openings unexpectedly increased in November, prompting traders to push back their expectations on when the Fed can cut interest rates this year.

European stocks closed mostly higher on Tuesday despite data showing that inflation in the eurozone rose to its highest level in five months for December.

The pan European STOXX 600 gained 0.3 percent. The German DAX and France's CAC 40 both rose by 0.6 percent while the U.K.'s FTSE 100 finished marginally lower.