European stocks may open flat to slightly higher on Wednesday as investors await key U.S. economic data that could influence the Federal Reserve’s rate decision next week.
Payroll processor ADP is scheduled to release its report on private sector employment for November later in the day.
Economists expect private sector employment to edge up by 10,000 jobs in November after rising by 42,000 jobs in October.
Reports on service sector activity, personal income and spending and consumer sentiment may garner investor attention in the coming days.
The delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, is due on Friday and a hotter-than-expected reading might revive worries that rates need to stay elevated for longer.
CME Group’s FedWatch Tool currently indicates an 89.4 percent chance the Fed will cut rates by another quarter point on December 10, up from 63.0 percent a month ago.
Money markets are pricing in additional three quarter-point Fed reductions over the next year.
As concerns mount over the impending change in leadership at the Federal Reserve, President Donald Trump said he plans to announce his selection to lead the central bank in early 2026.
Meanwhile, shares of Marvell Technology jumped more than 10 percent late Tuesday after the chipmaker gave an upbeat outlook for its data business.
American Eagle Outfitters stock also soared 11 percent after the retailer posted strong Q3 results and lifted its full-year forecast.
Asian markets were mixed, with Japan and South Korea leading regional gains as technology stocks tracked Wall Street higher.
Chinese and Hong Kong markets were moving lower after the release of weak services data and amid deepening property stress.
A private survey showed growth in China’s services sector slipped to a five-month low in November.
Bearish bets on China Vanke Co. climbed to a decade high in Hong Kong as the home builder seeks to delay a bond repayment by one year.
The dollar index slipped while gold ticked higher as investors braced for a widely expected Federal Reserve interest-rate cut next week.
Oil edged up slightly after declining in the previous session as investors watched Russia-Ukraine peace talks.
High-stakes U.S.-Russia talks on ending the war in Ukraine failed to yield a breakthrough on Tuesday, as the Kremlin said “no compromise” had been found yet on the key question of territory.
Talks with U.S. envoys Steve Witkoff and Jared Kushner were “very useful”, but much work remains to be done, a senior aide to the Russian President has said.
Overnight, U.S. stocks ended higher, recovering some losses from the previous session as Bitcoin steadied after Monday’s 8 percent plunge, Treasury yields eased and appetite returned to large-cap tech shares.
The tech-heavy Nasdaq Composite climbed 0.6 percent, the Dow gained 0.4 percent and the S&P 500 added 0.3 percent, a day after ending their runs of five consecutive winning sessions.
European stocks ended Tuesday’s session on a mixed note, with Ukraine peace talks and upcoming central bank meetings in focus.
The pan European Stoxx 600 closed flat with a positive bias. The German DAX rose half a percent, while France’s CAC 40 slipped 0.3 percent and the U.K.’s FTSE 100 finished marginally lower.
Business News
European Shares Seen Tad Higher At Open
2025-12-03 05:28:08
