European Shares Poised For Mixed Open; US Inflation Data Eyed

(RTTNews) - European stocks are seen opening on a mixed note Friday, after having touched three-week lows in the previous session on worries about the outlook for rates and growth.

Accenture has warned of weaker revenue growth and launched sweeping cost-cuts, reflecting sluggish corporate demand for consulting projects.

U.S. President Donald Trump has announced a new round of punishing tariffs on pharma products, kitchen cabinets and bathroom vanities, upholstered furniture and on heavy trucks starting on October 1, adding to uncertainties concerning international trade. The U.S. is planning to ask chip companies to manufacture the same number of semiconductors domestically as their customers import from overseas producers, and companies that do not maintain a 1:1 ratio over time would have to pay a tariff, the Wall Street Journal reported, citing people familiar with the plan.

As the risk of a partial U.S. government shutdown rises, the White House budget office has threatened sharp cuts in the U.S. workforce if the Congress does not pass legislation to keep the federal government open.

On the geopolitical front, Russia has announced it will stop exporting fuel until the end of the year as gas stations across the country and in areas it occupies are running low due to Ukrainian drone attacks.

In economic releases, all eyes now remain on the U.S. PCE inflation report due later in the day as strong data complicated the outlook for further easing after last week's Fed rate cut.

Asian markets were broadly lower after the S&P 500 ended lower for a third straight session on Thursday, marking the longest slide in a month on worries about lofty valuations.

South Korea's Kospi average was down nearly 3 percent on escalating concerns over protracted tariff negotiations with the United States.

The dollar held overnight gains and short-end Treasury yields rose after data showed U.S GDP grew at the fastest pace in nearly two years in the second quarter.

Gold edged lower but headed for its sixth weekly gain. Oil ticked higher and was on track for its biggest weekly gain in 3 months following Ukraine's attacks on Russia's energy infrastructure.

Overnight, U.S. stocks fell for a third straight session as hopes for aggressive Fed rate cuts faded and concerns prevailed about the outlook for the artificial intelligence trade.

Strong economic data, including an unexpected drop in jobless claims, a sharp upgrade in Q2 GDP growth and a rebound in demand for U.S. durable goods after two months of declines, helped limit overall losses to some extent.

The tech-heavy Nasdaq Composite and the S&P 500 both fell by half a percent while the Dow gave up 0.4 percent.

European stocks closed broadly lower on Thursday after the U.S. opened new national security investigations into the import of personal protective equipment, medical items, robotics, and industrial machinery.

The pan European Stoxx 600 fell 0.7 percent. The German DAX dipped 0.6 percent, while France's CAC 40 and the U.K.'s FTSE 100 both ended down around 0.4 percent.