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European stocks are seen opening mixed on Wednesday as traders slash bets on interest-rate hikes from global central banks.<\/p>\n
Rising economic risks tempered investor expectations for how steeply the Federal Reserve will raise interest rates. <\/p>\n
The outlook for a 50 basis point hike at the March 16 Fed meeting has dissipated, though a smaller 25 basis point hike is seen as a virtual certainty.<\/p>\n
Federal funds futures markets<\/span> now price only a 5 percent chance of a 50 basis point hike at the upcoming Fed meeting.<\/p>\n Market participants await Fed Chair Jerome Powell’s testimony before the U.S. Congress on Wednesday and Thursday for more clarity on interest rates. <\/p>\n Asian markets were mostly lower and oil prices surged over $5 per barrel after U.S. President Joe Biden announced he was joining U.S. allies in closing the country’s air space to Russian aircraft.<\/p>\n Brent oil extended its relentless rally above $110 a barrel despite an agreement by the United States and other major governments in the International Energy Agency to release 60 million barrels from strategic reserves to stabilize supply.<\/p>\n In an annual State of the Union speech, Biden said he would take robust action to protect American businesses and consumers. <\/p>\n Gold slipped on a firmer dollar as Russia’s invasion fueled fears of global economic turmoil. American oil and gas giant ExxonMobil is ending its decades-long involvement in Russia, following similar decisions by British oil giants BP PLC and Shell, and Norway’s Equinor ASA.<\/p>\n Bitcoin extended a two-day rally, leading broad-based gains in cryptocurrencies. <\/p>\n In economic releases, unemployment data from Germany, U.K. Nationwide house price figures and the euro zone flash inflation data are due later in the day. <\/p>\n Overnight, U.S. stocks fell sharply and bonds rallied, as Russian forces stepped up attacks on Ukraine and oil topped $105 a barrel, adding to concerns surrounding inflation and growth.<\/p>\n The Dow lost 1.8 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both shed around 1.6 percent.<\/p>\n European stocks slumped on Tuesday amid concerns that the Ukraine-Russia conflict could exacerbate inflation and suppress growth.<\/p>\n The pan European Stoxx 600 declined 2.4 percent. The German DAX plunged 3.9 percent, France’s CAC 40 plummeted 3.9 percent and the U.K.’s FTSE 100 gave up 1.7 percent. <\/p>\n<\/p>\n Market Analysis<\/p>\n<\/div>\n