European Shares Set To Open Higher As Focus Shifts To Earnings

(RTTNews) - European stocks are seen opening on a firm note on Tuesday after the Nasdaq notched a record close overnight, led by strength in artificial intelligence and technology stocks.

U.S. stock futures ticked higher as traders trimmed rate hike bets and awaited cues from the start of the quarterly earnings season.

After U.S. job growth slowed more than expected in September, markets now see about a 20 percent chance of another Fed rate hike this month, down from roughly 70 percent a week earlier, according to CME FedWatch tool.

The release of the ADP Employment Change 4-week average figures later in the day as well as the minutes from the Fed's September policy meeting, due on Wednesday, will be closely watched for clues on how policymakers view inflation and the softer labor market.

The U.S. earnings season kicks off this week, with PepsiCo and Delta Air Lines scheduled to report this week, followed by major banks next week.

Investors also look forward to the November 3 midterm elections that could determine control of Congress.

Asian markets were broadly higher as crude oil prices retreated from recent peaks, helping ease concerns around inflation and input costs.

Gold prices fell half a percent to $4,122 an ounce as a firmer dollar and elevated Treasury yields offset support from reduced chances of an October rate hike by the Federal Reserve.

Brent crude futures held above $100 a barrel after falling in the previous session on reports suggesting that Middle East crude exports are recovering toward pre-war levels despite continued risks to shipping.

Saudi Aramco unexpectedly lowered its November official selling prices for crude oil bound for Asia by the widest margin in six years as oil flows from the Middle East recover after months of disruptions linked to the Iran war.

U.S. stocks closed higher overnight as investors reacted positively to a couple of buyout announcements and a dip in crude oil prices following the G7 announcement of a 100-million-barrel emergency stock release.

The 10-year yield climbed above 5.30 percent after data showed the U.S. services sector experienced a slowdown in growth during September, but cost pressures reached their highest level in over four years.

The tech-heavy Nasdaq Composite rallied 1.1 percent to notch a new record closing high while the S&P 500 surged 0.7 percent and the narrower Dow added 0.2 percent.

European stocks ended mixed on Monday amid concerns about France's fiscal outlook and political uncertainty ahead of the April 2027 elections.

The pan-European STOXX 600 advanced 0.4 percent. While France's CAC 40 shed 0.8 percent, the German DAX inched up marginally and the U.K.'s FTSE 100 rose 0.3 percent.