European Shares Seen Opening Flat To Higher

European stocks look set to open a tad higher on Wednesday as trade war fears faded and investors waited for cues from the Fed meeting.

The U.S. Federal Reserve is widely expected to hike interest rates by 25 basis points when it concludes a two-day policy meeting later in the day.

Traders will pay close attention to the accompanying statement and Fed Chairman Jerome Powell’s subsequent press conference for additional clues about the outlook for rates.

Asian stocks are mostly higher and U.S. bond yields surged higher while oil prices moved away from four-year highs, as U.S. crude supplies showed yet another gain and the Trump administration said it would ensure a well supplied oil market before the re-imposition of sanctions on Iran.

Japanese Prime Minister Shinzo Abe will meet U.S. President Donald Trump in New York today to discuss trade and reach a formal agreement for expanding business when trade issues are becoming a source of friction between the two countries.

Consumer confidence data from France is due later in the session, with the corresponding index seen unchanged at 97 in September.

Overnight, U.S. stocks ended mixed as investors confronted with higher interest rates and oil prices. The tech-heavy Nasdaq Composite edged up 0.2 percent, while the Dow dropped 0.3 percent and the S&P 500 slipped 0.1 percent.

European markets rose on Tuesday, with higher oil prices, better-than-expected first-half trading results from clothing retailer Next Plc and optimism over the Italian budget helping underpin investor sentiment.

The pan-European Stoxx Europe 600 index gained half a percent. The German DAX inched up 0.2 percent, France’s CAC 40 index rose 0.1 percent and the U.K.’s FTSE 100 climbed 0.7 percent.

by RTTNews Staff Writer

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