European Shares Likely To Open On Firm Note
(RTTNews) - European stocks may open on a positive note Tuesday, thanks to a bounce in battered Chinese and Hong Kong markets.
Beijing stepped up efforts to stem an equity rout, with a major sovereign fund vowing to increase its holding in local stocks.
Central Huijin Investment Ltd., the unit that holds Chinese government stakes in big financial institutions, said it would continue to increase holdings of exchange-traded funds.
The Bloomberg News reported that the China Securities Regulatory Commission plans to update top leadership on market conditions and initiatives.
Asian stocks traded mixed, with Chinese and Hong Kong markets rallying after recent string of heavy losses.
Gold languished near one-week lows while the dollar steadied after hitting its strongest level since November on hawkish Fed comments.
Fed Bank of Minneapolis President Neel Kashkari said on Monday that officials have time to study data before cutting rates.
His Chicago counterpart Austan Goolsbee reiterated he'd like to see more of the favorable inflation data.
The Organization for Economic Co-operation and Development (OECD) has said in a report that it's too soon to say if sharp interest rate increases have contained underlying price pressures.
Oil edged up slightly in Asian trade as the Israel defense forces geared up for a critical confrontation in Rafah in the southern Gaza Strip. Traders also took stock of a visit to the Middle East by U.S. Secretary of State Antony Blinken to discuss a ceasefire offer in the region.
In economic releases, factory orders and construction Purchasing Managers' survey results from Germany are awaited later in the day.
U.S. stocks declined overnight while Treasury yields surged as Fed Chair Jerome Powell reiterated the central bank is unlikely to cut interest rates next month.
Additionally, a measure of U.S. service sector growth hit a four-month high and prices picked up, leading investors to temper rate cut expectations.
The tech-heavy Nasdaq Composite slipped 0.2 percent, the S&P 500 eased 0.3 percent and the Dow dropped 0.7 percent.
European stocks closed Monday's lackluster session little changed. The pan-European STOXX 600 ended flat with a negative bias.
The German DAX, France's CAC 40 and the U.K.'s FTSE 100 all finished marginally lower.
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