European Shares Poised For Tepid Start As Bond Yields Climb

(RTTNews) - European stocks are seen opening on a cautious note Thursday after hawkish Fed minutes confirmed the need for further interest rate increases.

Asian markets fell broadly, with benchmark indexes in Australia, Japan and Hong Kong falling 1-3 percent, as investors fret about the impact of rising interest rates on economic growth.

U.S.-China tensions also remained on investors' radar, with the United States firmly opposing China's plans to curb exports on gallium and germanium, metals crucial for producing semiconductors.

The dollar index rose while the U.S. 10-year and two-year Treasury bond yields jumped to a fresh three-month high after the Fed minutes hinted at another rate hike this month.

Spot gold traded firm at $1,918 per ounce while oil prices eased on fears of a sluggish demand recovery in the world's top crude importer China.

In economic releases, U.S. ISM services PMI as well as ADP employment changes for June along with Eurozone retail sale figures for May are likely to garner investor attention later in the session.

Factory orders and construction Purchasing Managers' survey results from Germany may also influence trading sentiment.

U.S. stocks fell overnight as the June FOMC minutes confirmed a hawkish hold stance and data showed new orders for U.S. manufactured goods rose less than expected in May.

The Fed minutes showed that board members expect more rate hikes, but at a slower pace.

The Dow dipped 0.4 percent, while the S&P 500 500 and the tech-heavy Nasdaq Composite both eased around 0.2 percent.

European stocks slipped into the red on Wednesday after disappointing service sector data from China and Europe.

The pan European STOXX 600 declined 0.7 percent. The German DAX shed 0.6 percent, France's CAC 40 gave up 0.8 percent and the U.K.'s FTSE 100 lost 1 percent.