European Shares Poised For Steady Start Despite Dismal China Data

(RTTNews) - European stocks are seen opening on a positive note Wednesday despite mounting concerns about a possible U.S. recession.

As inflation hurts consumers and businesses, top U.S. banks have warned of recession and lower earnings in 2023. However, the depth and duration of the recession is unknown.

Asian markets were mostly lower after China reported weak trade data, with both imports and exports declining in November as a result of strict COVID-19 restrictions at home and weakening global demand.

China's exports fell an annual 9 percent in November while imports tumbled 10.9 percent, customs data showed.

Regional losses, however, remained capped amid expectations that Beijing would soon announce an easing of COVID restrictions.

The dollar edged up on growth concerns and gold traded in a tight range while oil edged up slightly, after having tumbled around 4 percent in the U.S. trading session overnight to pre-Ukraine crisis levels.

German industrial production, Eurozone GDP numbers and ECB member commentary may sway sentiment as the session progresses.

The U.S. economic calendar remains relatively quiet today, with revised data on labor productivity and costs in the third quarter due.

U.S. stocks fell sharply overnight to extend losses from the previous session as signs of a resilient economy cast doubt on the Fed easing rate hikes.

The Dow lost 1 percent, the tech-heavy Nasdaq Composite tumbled 2 percent and the S&P 500 shed 1.4 percent.

European stocks closed lower on Tuesday after ECB chief economist Philip Lane said in an interview that interest rates will need to rise several more times to rein in inflation.

The pan European STOXX declined 0.6 percent. The German DAX slipped 0.7 percent, France's CAC 40 index eased 0.1 percent and the U.K.'s FTSE 100 dipped 0.6 percent.