European Shares Likely To Open On Firm Note

(RTTNews) - European stocks are likely to open on a positive note Wednesday as Federal Reserve Chair Jerome Powell's dovish comments, highlighting weakness in the U.S. job market, raised expectations for more interest-rate cuts.

On the trade front, U.S. Trade Representative Jamieson Greer said there was still a chance to resolve a dispute over critical minerals restrictions and it is up to China whether the planned 100 percent tariffs on its exports would take effect on November 1 or sooner. He added that a Trump-Xi meeting was still planned but not yet confirmed.

Separately, President Donald Trump said that the United States must be careful with China although the relationship between the countries is fair.

Elsewhere, media reports suggest that the European Union is considering forcing Chinese firms to hand over technology to European companies if they want to operate locally.

It was said the measures would apply to companies seeking access to key digital and manufacturing markets like cars and batteries.

Trading later in the day may be impacted by reaction to earnings news from financial giants Bank of America and Morgan Stanley as well as remarks by several Fed officials.

Closer home, the release of Eurozone industrial production data may garner some attention later in the day.

As France's political crisis deepens, Prime Minister Sébastien Lecornu has told parliament he backs suspending controversial 2023 pension reforms.

Asian markets were broadly higher as upbeat results from top U.S. banks and rising expectations of a Federal Reserve rate cut this month offset Sino-U.S. tensions.

Deflationary pressures persisted in China, with both consumer and producer prices falling in September, official data released earlier today showed.

Treasury yields were down, and the dollar held losses as the U.S. government shutdown entered its third week and President Trump renewed his tariff threats against BRICS, alleging the bloc is "against the dollar" and claiming nations are withdrawing.

Gold jumped more than 1 percent toward $4,200 per ounce while crude oil extended overnight losses to hover near a five-month low.

Overnight, U.S. stocks ended mixed as the U.S. and China began charging tit-for-tat port fees on each other's ships, the IMF warned of a "disorderly" global market correction, and Fed Chair Jerome Powell signaled two more quarter-point interest-rate cuts this year, citing a sharp slowdown in hiring.

Powell cautioned that "there is no risk-free path for policy as we navigate the tension between our employment and inflation goals."

The Dow ended 0.4 percent higher following strong third-quarter results from several big banks, including JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo.

The S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite gave up 0.8 percent after President Trump accused China of an "economically hostile act" by purposefully not buying U.S. soybeans and threatened to terminate business with China having to do with cooking oil and other elements of trade as retribution.

European stocks closed mostly lower on Tuesday as investors reacted to escalating U.S.-China trade tensions, the political upheaval in France and some downbeat regional economic data.

The pan-European Stoxx 600 dropped 0.4 percent. The German DAX shed 0.6 percent and France's CAC 40 slipped 0.2 percent while the U.K.'s FTSE 100 finished 0.1 percent higher as the pound weakened after mixed jobs data.