European Shares To Open Higher Amid Cautious Trading

(RTTNews) - European stocks are seen opening broadly higher on Wednesday, though the upside may remain capped amid ongoing concerns over artificial intelligence-driven disruptions in the technology and other sectors.

As economic uncertainties mount, traders await reports on U.S. durable goods orders, housing starts and industrial production as well as the minutes of the latest Fed meeting later in the day for directional cues.

After strong jobs data and benign inflation readings last week, investors eagerly await a report on U.S. personal income and spending on Friday, which includes the Federal Reserve's preferred readings on inflation.

Fed Governor Michael Barr said in a speech on Tuesday rates should remain steady "for some time" amid inflation risks.

Fed Bank of Chicago President Austan Goolsbee, meanwhile, said there is potential for more interest-rate cuts this year if inflation resumes a decline to the Fed's 2 percent target.

Asian stocks were moving higher in thin trade, with markets in China, Hong Kong and South Korea closed for the Lunar New year holidays.

The dollar was firm as investors weighed progress in Rusia-Ukraine as well as U.S.-Iran peace talks.

Iran has said it has reached an understanding with the United States on the main "guiding principles" to resolve their dispute over Tehran's nuclear program.

Russian and Ukrainian delegations have ended the first day of U.S.-brokered peace talks in Geneva, with Ukraine's lead negotiator Rustem Umerov saying discussions were focused on "practical issues and the mechanics of possible solutions".

Gold surged over 1 percent in Asian trade after falling more than 2 percent in the previous session to breach the key psychological level of $4,900 per ounce.

Oil prices were little changed after tumbling nearly 2 percent in the previous session on signs of easing geopolitical tensions.

Overnight, U.S. stocks fluctuated before ending marginally higher as financials gained ground, offsetting continued declines in software stocks on fears whether the marginal dollar spent on AI will generate the expected return.

Investors also reacted to weak homebuilder confidence data and comments from Trade Representative Jamieson Greer that adjustments could be made to broad tariffs on steel and aluminum.

The Dow, the tech-heavy Nasdaq Composite and the S&P 500 all ended up around 0.1 percent.

European stocks closed mostly higher on Tuesday due to easing tensions surrounding Iran and Russia.

The pan European Stoxx 600 rose half a percent as a fresh set of bleak jobs data reinforced expectations that the Bank of England may cut interest rates as soon as March.

The German DAX and the U.K.'s FTSE 100 both surged by 0.8 percent while France's CAC 40 added half a percent.