European Shares Seen Opening Mixed In Lackluster Trade

European stocks are seen opening on a mixed note Thursday as investors await more U.S. earnings and economic data for directional cues.

Tesla missed profit estimates in the first quarter of 2023 as margins took a hit from a series of aggressive price cuts.

On the contrary, technology pioneer IBM’s earnings topped estimates.

Asian stocks were trading mixed as expectations of more interest-rate hikes lifted the U.S. dollar and pushed up yields across the board.

Federal Reserve Bank of New York President John Williams said Wednesday that inflation is still at problematic levels and the U.S. central bank will act to lower it. Traders expect a 25-bps rate hike from the Fed next month.

Chinese markets led losses after the People’s Bank of China kept its benchmark lending rates unchanged for the eighth month.

Gold traded below $2,000 per ounce in Asian trading while oil prices fell about 1 percent to extend overnight losses on demand worries.

In economic releases, the European Central Bank is slated to issue the account of the monetary policy meeting of the governing council held on March 15 and 16 later in the day. At the meeting, policymakers had hiked the interest rates by 50 basis points.

Across the Atlantic, trading may be impacted by reaction to reports on weekly jobless claims, existing home and leading economic indicators.

U.S. stocks ended flat for the second straight session overnight following mixed corporate earnings from top companies including Netflix, Travelers and Morgan Stanley.

Traders reacted to the Fed’s Beige Book survey results showing that economic activity was little changed in recent weeks, with hiring and inflation slowing and access to credit narrowing.

The tech-heavy Nasdaq Composite edged up marginally while the S&P 500 ended flat with a negative bias and the Dow eased 0.2 percent.

European stocks also ended mixed on Wednesday as investors digested U.K. inflation data and hawkish comments from Federal Reserve officials on the trajectory of interest rates hikes.

The pan European STOXX 600 slipped 0.1 percent. The German DAX edged up marginally and France’s CAC 40 added 0.2 percent while the U.K.’s FTSE 100 slid 0.1 percent.

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