European Shares Seen Lower As Global Growth Worries Intensify

(RTTNews) - European stocks are likely to open lower on Friday amid worries that inflation-fighting central banks would tip world economies into recession.

The Fed's preferred inflation measure held around multi-decade highs in May and a measure of U.S. consumer spending fell in May for the first time this year and prior months were revised lower, underlining the gloomy outlook.

Elsewhere, sentiment at Japan's large manufacturers worsened in the April-to-June period, the Bank of Japan's quarterly tankan business survey showed, rekindling worries about the world's third largest economy.

Chinese data offered some respite, with the Caixin/Markit manufacturing purchasing managers' index (PMI) rising to 51.7 in June, indicating the first expansion in four months.

Traders await flash Eurozone consumer inflation figures and the U.S. ISM Manufacturing PMI later in the day for a fresh impetus.

The final Eurozone PMI reading is seen at 52.0 in June, in line with the flash estimate, but down from 54.6 in May.

Asian markets traded mostly lower while oil extended overnight losses after an OPEC decision to proceed with a limited boost to output.

The dollar was little changed against major peers but was on track for its best week in four. Gold was on track for its third weekly fall.

U.S. stocks fell overnight to wrap up a grueling second quarter after data showed U.S. household spending slowed in May amid historically high inflation and elevated interest rates.

The S&P 500 dropped 0.9 percent, bringing its losses for the first half of the year to 21 percent. The Dow dipped 0.8 percent and the tech-heavy Nasdaq Composite fell 1.3 percent.

European stocks slumped on Thursday, suffering their worst quarter since the pandemic-led carnage in early 2020 amid worries about prolonged inflation leading to a global economic downturn.

The pan European Stoxx 600 tumbled 1.5 percent. The German DAX fell 1.7 percent, France's CAC 40 index gave up 1.8 percent and the U.K.'s FTSE 100 declined 2 percent.