European Shares Set To Extend Losses Amid Risk Aversion

(RTTNews) - European stocks are seen opening on a cautious note Tuesday as concerns persist over tech valuations and the outlook for U.S. interest rates.

As economic risks mount, investors await cues from the delayed September U.S. jobs data and earnings from Nvidia.

The strength of Nvidia's results and its guidance could have a significant impact on the markets amid recent concerns about an AI bubble.

Nvidia is all set to unveil its third quarter results after the close of trading on Wednesday, and its forward guidance could have wide implications for the broader artificial intelligence industry's prospects.

Traders also await results this week from major retailers Walmart, Home Depot and Target, seen as bellwethers for consumer spending. Home Depot is due to report later today before the opening bell.

In economic releases, reports on factory orders, the U.S. trade deficit and ADP employment are due to be released in the coming days along with the monthly jobs report for September.

The readings as well as speeches from Fed officials could impact the outlook for interest rates ahead of the Federal Reserve's next monetary policy meeting in December.

CME Group's FedWatch Tool currently indicates a 55.1 percent chance the Fed will leave rates unchanged next month and a 44.9 percent chance of another quarter point rate cut.

U.S. stock futures extended their overnight losses and Asian markets were deep in the red, signaling broader risk aversion.

Gold extended losses for a fourth straight session, weighed down by a firm dollar amid diminished prospects of a Fed rate cut next month.

Oil prices were moving lower as investors weighed the impact from an emerging global surplus against U.S. sanctions on Russia.

U.S. stocks declined overnight to reach their lowest levels in a month on concerns over the economic outlook.

The Dow dipped 1.2 percent, the tech-heavy Nasdaq Composite gave up 0.8 percent and the S&P 500 fell 0.9 percent.

European stocks closed firmly in the red on Monday amid dwindling Fed rate-cut bets. The pan European Stoxx 600 slid half a percent.

The German DAX lost 1.2 percent, France's CAC 40 shed 0.6 percent and the U.K.'s FTSE 100 slipped 0.2 percent.