European stocks are seen opening higher on Wednesday as investors await the minutes from the last Fed meeting later in the day for more clarity on the outlook for rates.
With plenty of economic data and surveys pointing to a slowdown, the Fed is facing a tough job of walking the tight rope between controlling the red-hot inflation and supporting growth.
While the world economy faces headwinds, current growth forecasts offer a buffer against a potential global recession, IMF first deputy managing director Gita Gopinath said in an interview on the sidelines of the World Economic Forum in the Swiss resort of Davos.
Asian markets traded mixed in cautious trade and oil prices climbed on the prospect of tight supplies, while gold slipped from two-week highs as the dollar index firmed after hitting its lowest level in a month in the previous session.
Revised quarterly national accounts and consumer confidence survey results from Germany as well as U.S. durable goods orders data are due later in the day.
U.S. stocks ended mostly lower overnight on growth and earnings worries, as housing data disappointed and Snap warned of weaker than expected second quarter results, citing deteriorating macroeconomic trends.
The tech-heavy Nasdaq Composite fell 2.4 percent to end at its lowest closing level since November 2020 and the S&P 500 shed 0.8 percent to hover near bear market territory, while the Dow edged up 0.2 percent.
European stocks fell on Tuesday, as a broad package of Chinese measures to support the economy underwhelmed investors and data showed U.S. and euro zone business activity slowed in May.
The pan European Stoxx 600 declined 1.1 percent. The German DAX lost 1.8 percent, France’s CAC 40 index gave up 1.7 percent and the U.K.’s FTSE 100 dipped 0.4 percent.
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