European Shares Set To Follow Asian Peers Lower On Weak China Data

European stocks may open lower on Wednesday as investors fret about slowing global growth and the prospect of further interest-rate hikes by the Federal Reserve.

Official data released earlier today showed China’s factory activity contracted faster than expected in May on weakening demand, adding to concerns over the nation’s wobbly economic recovery.

Sino-U.S. tensions remained on investors’ radar after China declined a U.S. request for the countries’ defense chiefs to meet this week.

Asian markets were broadly lower as the federal debt ceiling bill passed a crucial test in the U.S. House Rules Committee. The full House is expected to vote later in the day.

The dollar index traded close to 10-week highs hit on Monday and gold was marginally higher while crude prices extended losses, after having fallen over 4 percent in the U.S. trading session overnight amid uncertainty about the supply outlook, heading into the June 4 OPEC+ policy meeting.

U.S. stocks ended mixed overnight as a measure of U.S. consumer confidence slipped in May and reports emerged that some Republicans were seeking bigger spending cuts.

The Dow slipped 0.2 percent while the S&P 500 ended marginally higher and the tech-heavy Nasdaq Composite edged up 0.3 percent.

European stocks closed lower on Tuesday, as downbeat Eurozone economic sentiment data, hawkish Fed expectations and concerns around China’s economic recovery dented the outlook for global growth.

The pan European STOXX 600 dropped 0.9 percent. The German DAX eased 0.3 percent, France’s CAC 40 fell 1.3 percent and the U.K.’s FTSE 100 shed 1.4 percent.

Source: Read Full Article