European Shares Seen Tad Lower At Open

(RTTNews) - European stocks are seen opening a tad lower on Wednesday as investors weigh AI optimism against mounting economic concerns.

Markets now see an ECB rate hike next week after Eurozone inflation rose to the highest since 2023 in May, driven by energy and services.

In a speech prepared for the University of Derby business school on Tuesday, Bank of England policymaker Megan Greene stated that earlier action might be required to contain the risk of broader price increases across the economy.

Elsewhere, Cleveland Fed President Beth Hammack said persistent inflation may require an interest rate hike.

U.S. stock futures were mixed, a day after renewed enthusiasm for the artificial-intelligence trade drove U.S. equities to new record highs overnight.

Macy's reports first-quarter earnings before the opening bell later today, with investors looking for clues about whether the department store chain can sustain momentum in a challenging retail environment.

In economic releases, the ADP employment report for May, final durable gods and factory orders data for April, and the release of Fed's Beige Book survey results will be in the spotlight later today ahead of the all-important May employment report due on Friday.

Economists estimate a gain of 85,000 jobs last month, while the jobless rate is seen holding steady at 4.3 percent.

Close home, Eurozone PMI and PPI data may garner some attention later in the day.

Asian markets climbed to a record despite mixed signals over the status of U.S.-Iran peace talks.

The dollar continued to strengthen, and gold was subdued at $4,468 an ounce while Brent crude futures traded above $97 a barrel, extending gains for a third straight session amid continued uncertainty surrounding U.S.-Iran peace talks.

Iranian media had reported that talks with the U.S. were halted amid continued fighting in Lebanon.

U.S. President Donald Trump said reports of stalled talks were "fake news" and that the two sides have been "continuously" having conversations.

A senior Iranian military officer said that a resumption of hostilities with the United States was inevitable.

It was reported that U.S. forces defeated multiple ballistic missiles and drones on Tuesday, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East.

Overnight, U.S. stocks eked out modest gains to reach record closing highs for a third day running as ongoing AI momentum offset inflation fears and rate hike concerns.

President Trump said talks for a deal with Iran are continuing, but media reports suggested that Iran was taking 'stern' approach in negotiations and hasn't been in contact with Washington for days.

Israel continued operations in southern Lebanon despite Trump's effort to shore up ceasefire.

In economic news, a government report showed that U.S. job openings in April hit their highest in almost two years while hiring and overall separations both eased.

The Dow rose half a percent despite rising geopolitical tensions and elevated energy prices. The tech-heavy Nasdaq Composite finished marginally higher and the S&P 500 inched up 0.1 percent.

European stocks closed higher on Tuesday as investors assessed the latest euro zone inflation data and a strong forecast from STMicroelectronics.

The pan European Stoxx 600 climbed 0.7 percent. The German DAX gained half a percent, France's CAC 40 surged 0.8 percent and the U.K.'s FTSE 100 added 0.3 percent.