European Shares Seen Flat To Higher At Open

(RTTNews) - European stocks may open flat to slightly higher on Wednesday as investors watch the latest developments on the trade front and look ahead to key events this week, including Thursday's ECB meeting and the release of U.S. non-farm payrolls report o Friday.

The European Central Bank is widely expected to announce a 25-basis point reduction in its deposit rate, bringing it down to 2.00 percent, before pausing in the July meeting.

ECB officials, including Governor Francois Villeroy de Galhau, have indicated that while there is room for additional rate cuts, but the central bank must remain vigilant to evolving economic conditions.

Metal stocks could be in focus today as U.S. President Donald Trump signed executive order doubling tariffs on imported steel and aluminum to 50 percent, citing national security risks and unfair pricing.

Ahead of a fast-approaching deadline, the Office of the U.S. Trade Representative has reportedly sent letters to trading partners to remind them of an upcoming deadline in tariff negotiations.

In another development, U.S. Treasury Secretary Scott Bessent said Beijing has a choice on whether or not to be a dependable partner with the rest of the world.

Bessent noted that the country needs to shift to a consumption-led economy to stabilize global economic imbalances.

He suggested that fiscal stimulus and a focus on consumer spending could stabilize China's economy, rather than exporting deflation and surplus products worldwide.

Asian stocks rose for the first time in four days after new data portrayed a healthy U.S. labor market despite increased risks from trade policy.

Later in the day, reports on U.S. private sector employment and service sector activity may offer additional clues on the state of the world's largest economy.

The dollar edged lower, and Treasury yields dipped while gold held firm above $3.350 per ounce as markets price in two Federal Reserve rate reductions this year beginning in October. Oil edged lower after gaining for two days.

U.S. stocks closed higher overnight after the release of better-than-expected JOLTs Job Openings report.

The tech-heavy Nasdaq Composite and the S&P 500 gained 0.8 percent and 0.6 percent, respectively to reach their best closing levels in over three months as investors awaited new developments on tariffs. The narrower Dow rose half a percent.

European stocks also advanced on Tuesday after data showed Eurozone inflation fell below the ECB's 2 percent target in May for the first time in seven months, boosting expectations for another interest rate cut this week.

The pan European STOXX 600 finished marginally lower. The German DAX climbed 0.7 percent, France's CAC 40 rose 0.3 percent and the U.K.'s FTSE 100 edged up by 0.2 percent.