European Shares Set To Drop As Investors Await Fed Minutes

(RTTNews) - European stocks are likely to open on a tepid note Wednesday as investors keep a wary eye on movements in bond markets for directional cues.

Bonds worldwide slumped Tuesday, with Treasury yields rising across the curve, amid doubts over early rate cuts by the U.S. Federal Reserve and other top central banks.

Trading later in the day may be impacted by reaction to U.S. reports on manufacturing activity and job openings as well as the release of minutes of the Federal Reserve's latest monetary policy meeting, which could impact the outlook for interest rates.

A private payrolls report, jobless claims figures and the closely watched U.S. nonfarm payrolls report due later this week may offer additional clarity on whether the U.S. central bank will give up its fight against inflation too soon.

Currently, markets are betting on up to six rate cuts in 2024.

Asian markets traded lower across the board, with technology stocks pacing the declines following a rout in U.S. majors overnight.

Gold ticked higher as geopolitical tensions persisted and the dollar steadied after a sharp overnight rebound.

Oil prices continued to decline on expectations that the developments in the Red Sea region will not lead to major supply disruptions.

U.S. stocks ended lower overnight to extend the pullback seen in the final trading session of 2023 as Barclays downgraded Apple stock to underweight and yields ticked higher from multi-month lows on waning rate cut optimism.

The tech-heavy Nasdaq Composite tumbled 1.6 percent and the S&P 500 gave up 0.6 percent while the Dow finished marginally higher after a choppy session.

European stocks ended mostly lower on Tuesday, giving up early gains after the release of downbeat Eurozone and U.K. manufacturing PMI data.

The pan-European STOXX 600 ended 0.1 percent lower after hitting its highest level since Jan. 2022 intraday.

The German DAX inched up 0.1 percent while France's CAC 40 and the U.K.'s FTSE 100 both slipped around 0.2 percent.