European Shares Seen Up As China Eases Policy To Boost Growth

(RTTNews) - European stocks are seen opening broadly higher on Wednesday after chipmaker AMD reported better-than-expected earnings results and Chinese authorities announced a raft of stimulus measures, including interest rate cuts and a major liquidity injection, to help boost the economy.

AMD issued upbeat second quarter guidance after reporting first quarter earnings results that beat on the top and bottom lines.

The People's Bank of China cut the seven-day reverse repurchase rate to 1.4 percent from 1.5 percent and also trimmed the reserve requirement ratio by half a percentage point, hours after it emerged that senior U.S. and Chinese officials will hold their first trade talks in Switzerland this weekend to ease tensions.

All eyes now turn to the Fed's monetary policy announcement later in the day as calls for rate cuts grow.

The U.S. central bank is expected to keep interest rates unchanged, with markets currently expecting a rate cut in July as tariffs begin to weigh on employment.

Meanwhile, media reports suggest that U.S. Senators Rick Scott and Elizabeth Warren are pushing for an independent watchdog at the Federal Reserve to "aggressively hold" senior Fed officials accountable.

Closer home, factory orders and construction Purchasing Managers' survey results from Germany and retail sales from the euro area are due later in the session, headlining a busy day for the European economic news.

The dollar held steady in Asian trade while gold fell more than 1 percent after the announcement of formal trade talks between the U.S. and China.

Treasuries moved higher after a solid $42 billion sale of 10-year bonds. Oil extended gains after rising more than 3 percent on Wednesday on signs of weakening production in the U.S. and higher demand in Europe and China.

U.S. stocks fell for a second straight session overnight as President Donald Trump's tariff threats on entertainment and pharma sectors along with uncertain remarks on global trade agreements dampened hopes for progress on tariff resolutions.

Trump downplayed trade negotiations, saying he would prescribe tariff levels and trade concessions for partners looking to avoid higher duties.

During a White House meeting with Canadian Prime Minister Mark Carney, Trump expressed frustration with the media's repeated questions about when the U.S. will sign new trade deals.

"Everyone says, 'When, when, when are you going to sign deals?'" "We don't have to sign deals, they have to sign deals with us. They want a piece of our market. We don't want a piece of their market."

"I wish they'd ... stop asking how many deals are you signing this week?" "Because one day we'll come and we'll give you 100 deals."

Meanwhile, data showed U.S. trade deficit widened to a record high in March, raising concerns about Trump's tariff strategy.

The Dow gave up 1 percent, the tech-heavy Nasdaq Composite shed 0.9 percent and the S&P 500 declined 0.8 percent.

European stocks closed broadly lower on Tuesday, with upcoming central bank meetings, German politics and shifting U.S. trade policy in focus.

The pan European STOXX 600 dipped 0.2 percent, snapping its 10-day winning streak.

The German DAX and France's CAC 40 both fell by 0.4 percent while the U.K.'s FTSE 100 ended marginally higher as trading resumed after a long holiday weekend.