European Shares Seen Opening On Cautious Note

(RTTNews) - European stocks are seen opening broadly lower on Thursday as investors fret about stretched valuations and ponder the outlook for interest rates and economic growth.

Trading later in the day may be impacted by reaction to reports on U.S. weekly jobless claims, durable goods orders and existing home sales.

San Francisco Fed President Mary Daly said on Wednesday she expects further reductions ahead but making those policy adjustments will likely be required to balance both inflation and employment goals.

More Fed officials will be speaking later in the day, including John Williams, Austan Goolsbee, Jeffrey Schmid, Michelle Bowman and Michael Barr.

Meanwhile, U.S. Treasury Secretary Scott Bessent will start interviewing candidates next week to replace Jerome Powell as the Fed Chair.

Asian markets showed little movement in muted trade as sticky inflation and a slowing job market complicates Federal Reserve's rate messaging.

Treasury yields steadied after rising across the curve in the prior session. The dollar index was firm after climbing Wednesday.

Gold was little changed, after having slipped from a new record high the previous day. Crude oil prices traded lower after climbing to a seven-week high during the prior session.

U.S. stocks ended lower for a second straight session overnight as investors reacted to mixed messages from Fed officials on interest rates and Alibaba's plans to up AI spending by $53 billion.

Investors ignored data that showed sales of new U.S. single-family homes surged to the highest level in more than 3-1/2 years in August, as mortgage rates began to ease and builders offered discounts to lure in buyers.

The Dow dipped 0.4 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both fell around 0.3 percent.

European stocks ended mixed on Wednesday amid valuation concerns and uncertainty over the future path of U.S. interest rates.

The pan European Stoxx 600 eased 0.2 percent. The German DAX edged up by 0.2 percent and the U.K.'s FTSE 100 added 0.3 percent while France's CAC 40 shed 0.6 percent.