European Shares Set To Open Lower On Growth Worries

(RTTNews) - European stocks may open on a subdued note on Wednesday as growth worries lingered and the British pound extended gains on expectations of a breakthrough in Brexit negotiations in the coming days.

The dollar rally paused after U.S. Treasury yields came off their highs overnight and U.S. President Donald Trump renewed his criticism of the Federal Reserve. Trump told reporters he believes the central bank was moving too quickly with the rate hikes.

Elsewhere, China stepped up its war of words with the U.S. and said it had not initiated the trade war, but only responded in self-defence.

Asian markets remain lackluster on growth worries after the International Monetary Fund cut global economic growth forecasts for 2018 and 2019, saying the U.S. and China would feel the brunt of the impact of their trade war next year.

Brent crude prices edged lower in Asian trade after climbing 1.3 percent on Tuesday.

In economic releases, monthly GDP estimate, industrial production and foreign trade figures from the U.K. are due later in the session, headlining a busy day for the European economic news.

U.S. stocks ended mixed for the second day running on Tuesday as yields on Treasuries retreated from a seven-year high and the IMF cut its global growth forecasts, citing the negative effect of recent tariff actions.

The Dow dipped 0.2 percent and the S&P 500 slid 0.1 percent while the tech-heavy Nasdaq Composite finished marginally higher.

European markets ended Tuesday's session higher despite tensions between Rome and Brussels over Italy's 2019 budget and deficit targets.

The pan-European Stoxx Europe 600 index gained 0.2 percent. The German DAX rose 0.3 percent, France's CAC 40 index gained 0.4 percent and the U.K.'s FTSE 100 inched up 0.1 percent.
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