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European stocks look set to open on a sluggish note Wednesday as weak U.S. data released overnight raised worries that a recession may indeed be on the way. <\/p>\n
Gold traded flat as the dollar ticked higher and benchmark U.S. 10-year Treasury yields hovered near a more than one-month high on worries about inflation and tighter monetary policy. <\/p>\n
Federal Reserve Bank of Minneapolis President Neel Kashkari said on Tuesday inflation is much more embedded at a much higher level and the central bank has to be more aggressive to bring it under control.<\/p>\n
On the other hand, Goldman Sachs Group Inc. Chief Economist Jan Hatzius said he expects Fed Chair Jerome Powell to lay out a case for slower increases at his upcoming Jackson Hole speech on Friday. <\/p>\n
Focus is also on minutes of the ECB’s last policy meeting due this week that may sound hawkish. <\/p>\n
The euro is likely to slide further away below 20-year lows against the dollar amid much uncertainty around the supply of natural gas from Russia, a Citi strategist told CNBC on Tuesday. <\/p>\n
Asian markets<\/span> traded mixed, with Chinese and Hong Kong stocks suffering heavy losses, as a severe drought and power shortages in the Sichuan province spurred the closing of several major factories.<\/p>\n Oil prices fell slightly in Asian trade after a nearly 4 percent surge overnight as de facto OPEC leader Saudi Arabia flagged the possibility of introducing cuts to balance a market it described as “schizophrenic”.<\/p>\n U.S. stocks closed lower for a third straight session overnight as a slew of disappointing economic readings added to economic woes.<\/p>\n Business activity contracted for as second straight month in August, factory activity in the U.S. central Atlantic region contracted in the month and sales of new single-family homes plunged to a 6-1\/2-year low in July, adding to concerns about economic slowdown and tighter monetary policy.<\/p>\n The Dow dipped half a percent, the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite ended flat with a negative bias.<\/p>\n European stocks extended losses for a third straight session on Tuesday as the region’s energy crisis worsened and survey readings for euro area manufacturing and services pointed towards economic contraction in the third quarter.<\/p>\n The pan European Stoxx 600 shed 0.4 percent. The German DAX and France’s CAC 40 index both slipped around 0.3 percent, while the U.K.’s FTSE 100 gave up 0.6 percent. <\/p>\n<\/p>\n Business News<\/p>\n<\/div>\n