{"id":135043,"date":"2023-10-09T15:39:12","date_gmt":"2023-10-09T15:39:12","guid":{"rendered":"https:\/\/allmybiznews.com\/?p=135043"},"modified":"2023-10-09T15:39:12","modified_gmt":"2023-10-09T15:39:12","slug":"european-shares-may-see-cautious-start-as-rate-worries-persist","status":"publish","type":"post","link":"https:\/\/allmybiznews.com\/business\/european-shares-may-see-cautious-start-as-rate-worries-persist\/","title":{"rendered":"European Shares May See Cautious Start As Rate Worries Persist"},"content":{"rendered":"
European stocks may edge lower at open on Tuesday as investors fret about the impact of higher interest rates on global growth.<\/p>\n
Asian markets<\/span> were mostly lower, with Hong Kong’s Hang Seng falling more than 3 percent as traders returned to their desks after the National Day holiday on Monday. <\/p>\n China Evergrande Group shares jumped 23 percent in Hong Kong as trading in the heavily indebted Chinese property giant resumed following a halt last week.<\/p>\n Chinese markets remain closed for the Golden Week Holiday. <\/p>\n The Japanese yen slid to near a one-year low, with Finance Minister Shunichi Suzuki saying that any decision on currency market intervention would be based on volatility, not currency levels. <\/p>\n The Australian dollar was under pressure after the Reserve Bank of Australia held interest rates steady at its first board meeting under new Gov. Michele Bullock.<\/p>\n Crude oil prices fell nearly 1 percent in Asian trade after the World Bank cut its forecast for China’s economic growth in 2024.<\/p>\n Gold hit seven-month lows as the dollar index remained elevated at 11-month highs and the 10-year U.S. Treasury yield surged to the highest since October 2007 in the wake of hawkish commentary by Fed officials. <\/p>\n Fed Governor Michelle Bowman said that multiple interest-rate hikes may be required to get inflation down to the Fed’s 2 percent target. <\/p>\n Fed Vice Chair for Supervision Michael Barr said his focus is on how long to hold rates high. <\/p>\n Cleveland Fed leader Loretta Mester also said the Fed’s work is likely not done and one more rate hike may be needed this year.<\/p>\n The European economic calendar remains light, with only Swiss inflation data awaited later in the day. <\/p>\n Across the Atlantic, trading may be impacted by reaction to a report on job openings in the month of August ahead of the closely watched monthly jobs report on Friday.<\/p>\n U.S. stocks ended mixed overnight as rising oil prices and bond yields offset signs of resilience in the U.S. manufacturing sector and investor optimism over lawmakers reaching a deal to avert government shutdown.<\/p>\n The Dow slipped 0.2 percent to hit a four-month low, while the S&P 500 inched up marginally and the tech-heavy Nasdaq Composite rose 0.7 percent.<\/p>\n European stocks fell on Monday to snap a two-day winning streak after data showed Eurozone manufacturing activity remained mired in a deep downturn last month. The pan European STOXX 600 shed 1 percent to reach a six-month low.<\/p>\n The German DAX and France’s CAC 40 both dropped around 0.9 percent while the U.K.’s FTSE 100 declined 1.3 percent. <\/p>\n