European Shares Seen Little Changed After Thursday’s Sell-off

European stocks are seen opening little changed on Friday after steep losses in the previous session.

A cautious undertone may prevail as growth worries mount in the face of high inflation, aggressive tightening by central banks and excessive foreign exchange volatility.

Asian stocks fell for a third straight session, a dollar gauge held near a record high and oil prices dipped on recession fears, while gold steadied near a two-year low amid surging Treasury yields.

The 10-year U.S. Treasury yield soared 18 basis points to pierce 3.7 percent on Thursday, its highest in a decade.

In economic news, flash Purchasing Managers’ survey results from the euro area and the U.K. are due later in the session, headlining a busy day for the European economic news.

Across the Atlantic, traders are likely to keep an eye on Fed Chair Jerome Powell’s opening remarks at a Fed Listens event.

U.S. stocks ended lower for a third straight session overnight as investors fretted about the possibility of a recession and further volatility in stock and bond markets.

The Dow shed 0.4 percent and the S&P 500 gave up 0.8 percent to hit three-month closing lows, while the tech-heavy Nasdaq Composite fell 1.4 percent to its lowest closing level in well over two months.

European stocks slumped on Thursday as the Swiss National bank, the Norges Bank and the Bank of England all raised rates and a measure of Eurozone consumer confidence declined in September.

The pan European Stoxx 600 fell 1.8 percent. The German DAX lost 1.8 percent, France’s CAC 40 index tumbled 1.9 percent and the U.K.’s FTSE 100 declined 1.1 percent.

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