European Shares Poised For Soft Start Ahead Of US Jobs Data And Warsh Speech

(RTTNews) - European stocks are seen opening broadly lower on Wednesday as investors weigh U.S.-Iran tensions and await key U.S. economic data for additional clues on the outlook for U.S. monetary policy.

American and Iranian officials are in Qatar, but Iran said it would not meet with top U.S. envoys, raising fresh concerns over the fragile interim ceasefire between the two nations.

Renewed exchanges of fire over the weekend have also dampened expectations of a durable truce. It appears the two sides are far apart on key pillars of the initial framework they signed two weeks ago.

Iranian Parliament Speaker and chief negotiator, Mohammad Bagher Ghalibaf, said Iran will not enter negotiations with the United States on a final agreement unless five preliminary paragraphs of a recently signed pace memorandum of understanding are fulfilled.

These include provisions for ending the war on all fronts, including Lebanon, lifting the U.S. naval blockade, reopening the Strait of Hormuz, issuing U.S. waivers for Iranian crude oil exports, and releasing frozen Iranian assets, according to Xinhua news agency.

He also claimed that Israel is desperately trying to destroy a new 14-point MoU between Tehran and Washington.

Elsewhere, Lebanon's power parliament speaker Nabih Berri, an ally of Hezbollah, vowed to block the ratification of a separate, controversial U.S.-mediated framework deal between Lebanon and Israel in parliament.

"Those who drafted this document will have to deal with me and a very large number of lawmakers", he warned, according to Press TV.

U.S. stock futures edged lower as focus shifted to labor market data alongside upcoming remarks from Federal Reserve Chair Kevin Warsh later today at the annual European Central Bank Forum in Sintra, Portugal.

Investors will be attentive to how he frames the inflation and growth outlook as global oil supply risks ease.

The June ADP employment data, due later in the day, and nonfarm payroll figures on Thursday, may provide fresh insights into the Fed's rate path going forward.

Federal Reserve Bank of Cleveland President Beth Hammack warned on Tuesday that inflation is "still too high" and that she'll advocate for higher interest rates if inflation pressures fail to ease.

Markets currently price in roughly a 67 percent chance of a rate hike for September, according to the CME FedWatch Tool.

Asian markets were mixed as talks between the U.S. and Iran faced new hurdles, fueling inflation worries and increasing the likelihood of Federal Reserve interest-rate hikes.

The yen hit a fresh 40-year low versus the dollar, keeping traders on high alert for possible currency intervention by authorities.

Gold was subdued at $3,972 an ounce while Brent crude steadied above $73 a barrel after posting its steepest quarterly decline since 2020.

U.S. stocks advanced overnight and capped their best quarter in six years as technology stocks extended their rebound on expectations for strong spending for artificial intelligence and easing inflation risks.

In economic releases, U.S. job openings edged up to a two-year high in May but subdued hiring soured consumers' perceptions of the labor market, data showed.

The tech-heavy Nasdaq Composite rallied 1.5 percent and the S&P 500 gained 0.8 percent to post their best quarterly performance since 2020 on optimism over economic resilience and corporate earnings. The narrower Dow rose 0.3 percent to reach a new record closing high.

European stocks closed at record highs on Tuesday on the back of softer inflation data and hopes the European Central Bank will not hike interest rates anytime soon.

The pan-European STOXX 600 jumped 0.9 percent. The German DAX surged 1.5 percent, France's CAC 40 rose 0.4 percent and the U.K.'s FTSE 100 inched up 0.1 percent.