European Shares Seen Subdued Ahead Of Powell's Speech

(RTTNews) - European stocks may open lower on Wednesday as investors pause for breath after three days of gains.

With the risks of a recession rising, investors await remarks by Federal Reserve Chair Jerome Powell along with the U.S. quarterly GDP data due later in the day for directional cues.

New York Fed President John Williams and San Francisco's Mary Daly both said on Tuesday that they had to cool the hottest inflation in 40 years but insisted that a soft landing was still possible.

Asian markets followed Wall Street lower on doubts over whether the Federal Reserve can avoid a bruising economic downturn.

The dollar rebounded on inflation fears and global bond yields held firm, while oil prices fell in Asian trade, after having risen more than 2 percent on Tuesday amid concerns over tight global supply.

Flash inflation data from Germany and economic confidence from euro area are due later in the session, headlining a light day for the European economic news.

U.S. stocks erased earlier gains to end sharply lower overnight after a survey showed a measure of U.S. consumer confidence deteriorated to its lowest level in over a year in June on surging inflation.

Th Dow dipped 1.6 percent, the tech-heavy Nasdaq Composite tumbled 3 percent and the S&P 500 shed 2 percent.

European stocks extended a winning streak for a third day on Tuesday as China relaxed some COVID-19 quarantine requirements for international travelers, ECB President Christine Lagarde played down fears of a recession in the euro zone and the largest U.S. lenders passed the Fed's annual stress tests.

The pan European Stoxx 600 edged inched up 0.3 percent. The German DAX rose 0.4 percent, France's CAC 40 index gained 0.6 percent and the U.K.'s FTSE 100 climbed 0.9 percent.