European Shares Likely To Struggle For Direction In Early Trade

(RTTNews) - European stocks may struggle for direction at open on Thursday as investors keep a close eye on China's property sector and watch movements in bond and oil markets.

China Evergrande Group shares were suspended in Hong Kong after reports that the founder and chairman of the world's most heavily indebted real estate developer had been placed under police surveillance.

The dollar remained elevated against its peers and the 10-year Treasury yields hovered at a 16-year peak on concerns over rising interest rates.

Minneapolis Fed President Neel Kashkari said on Wednesday that he's unsure whether the central bank has raised interest rates enough to tame inflation, but a U.S. government shutdown or prolonged strike by automotive workers would mean less aggressive moves from the central bank.

Gold hovered around six-month lows below the key $1,900 an ounce level, while oil prices hit their highest level in over a year after EIA data showed crude stocks at a key storage hub fell to their lowest since July last year.

In economic releases, German and Spanish inflation data as well as European consumer confidence numbers may sway market sentiment later in the day.

Across the Atlantic, reports on U.S. GDP, personal consumption expenditure and jobless claims may attract investor attention ahead of remarks by Fed Chair Jerome Powell due to begin at the close of trading.

The personal consumption expenditures price index, the Fed's preferred inflation gauge, is due on Friday.

U.S. stocks fluctuated before closing narrowly mixed overnight, as an unexpected increase in August durable goods orders alongside surging yields and oil prices added to concerns around inflation and interest rates.

While the benchmark 10-year Treasury yield hit its highest levels since 2007, WTI crude futures reached a 13-month high on data showing that crude stockpiles in the largest U.S. storage hub dropped to the lowest since July 2022.

The Dow slipped 0.2 percent to hit a fresh three-month closing low, while the S&P 500 finished marginally higher and the tech-heavy Nasdaq Composite added 0.2 percent.

European stocks closed at six-month low on Wednesday as investors fretted about the outlook for inflation, interest rates and economic growth.

The pan European STOXX 600 slid 0.2 percent. The German DAX eased 0.3 percent and the U.K.'s FTSE 100 shed 0.4 percent while France's CAC 40 ended flat with a negative bias.