European Shares Poised For Mixed Open

(RTTNews) - European stocks are seen opening on a mixed note Wednesday as investors await big tech earnings and Fed Chair Jerome Powell's comments for insights into the economic impact of the Middle East conflict.

The U.S.-Iran conflict showed little sign of resolution, with negotiations making limited progress and the crucial Strait of Hormuz remaining effectively closed, leaving investors wary of fresh supply shocks.

As the situation reaches an impasse, media reports suggest that Iran is preparing a phased proposal as part of efforts to revive stalled negotiations.

The revised proposal in expected to cover all key issues, with reopening the Strait of Hormuz and the unfreezing of Iranian assets likely to be in focus in the initial phase.

During a special Gulf Cooperation Council meeting on Tuesday, Gulf Arab states have reportedly called for ensuring security and freedom of navigation in the strait.

On the earnings front, investors await earnings from major technology companies this week amid renewed concerns over the artificial intelligence boom.

Alphabet, Amazon, Meta Platforms and Microsoft are scheduled to report their financial results later today, while Apple is due to release its earnings Thursday.

Meanwhile, today's Federal Reserve policy meeting will be Jerome Powell's last monetary policy meeting as chair of the U.S. central bank.

Fed officials are set to hold rates steady, given stubborn inflation and a resilient labor market.

Traders will parse the accompanying statement and Powell's subsequent press conference for clues on whether rates have been derailed or just delayed.

The Bank of Canada will announce its decision on the target for the overnight rate later today while both the European Central Bank and the Bank of England will make their monetary policy announcements on Thursday.

Asian stocks were broadly higher in cautious trade, with Japanese markets shut for a public holiday.

The dollar held steady and U.S. Treasury yields hit multi-week highs while Brent crude futures held above $111 a barrel after rising around 3 percent in the prior session on mounting uncertainty around global supply.

The Trump administration stepped up pressure on Iran, warning global firms and governments of harsh sanctions over dealings with Iranian airlines, and threatening to sanction banks if they support Chinese private refiners buying Iranian oil.

In another significant development, the United Arab Emirates (UAE) has announced its abrupt exit from the Organization of Petroleum Exporting Countries, undermining the cartel's ability to influence the oil market.

U.S. stocks ended mostly lower overnight after reports emerged that OpenAI recently missed its own targets for new users and revenue.

Rising oil prices and inflation worries amid an ongoing stalemate in the Middle East conflict also contributed to the sell-off.

President Trump showed little enthusiasm for a new proposal from Iran to end the war and claimed that the country is in a "state of collapse" and was figuring out its leadership situation.

Iran said the U.S. is no longer in a position to dictate policy to other nations. The tech-heavy Nasdaq Composite gave up 0.9 percent, the S&P 500 declined half a percent and the narrower Dow finished marginally lower.

European stocks fell broadly on Tuesday amid earnings deluge and stalled U.S.-Iran negotiations.

The pan-European STOXX 600 dropped 0.4 percent. While the U.K.'s FTSE 100 inched up 0.1 percent, the German DAX dipped 0.3 percent and France's CAC 40 shed half a percent.