{"id":7843,"date":"2021-03-05T05:36:46","date_gmt":"2021-03-05T05:36:46","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/03\/05\/european-shares-likely-to-see-tepid-start\/"},"modified":"2021-03-05T05:36:46","modified_gmt":"2021-03-05T05:36:46","slug":"european-shares-likely-to-see-tepid-start","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/03\/05\/european-shares-likely-to-see-tepid-start\/","title":{"rendered":"European Shares Likely To See Tepid Start"},"content":{"rendered":"
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European stocks are likely to open lower on Friday after U.S. Federal Reserve Chairman Jerome Powell disappointed investors by not indicating that the Fed might step up purchases of long-term bonds to cap rising long-term interest rates. <\/p>\n

U.S. 10-year yield jumped and the dollar held firm near three-month highs, pulling gold prices to near nine-month lows. <\/p>\n

Oil extended overnight gains to rally toward $65 a barrel after OPEC+ chose not to relax supply curbs and stick with current quotas for April with some exceptions.<\/p>\n

Asian stocks skidded to one-month lows after China set a conservative economic growth target of above 6 percent for 2021, well below what economists had forecast, and outlined fiscal support to support economic recovery from the coronavirus<\/span> pandemic.<\/p>\n

On the U.S. stimulus front, Senate Democrats on Thursday came out with their version of the $1.9 trillion Covid relief bill, setting the stage for its approval as soon as this weekend. <\/p>\n

Factory orders data from Germany is due later in the session, headlining a light day for the European economic news. Economists expect orders to grow 0.7 percent sequentially in January, reversing a 1.9 percent fall in December.<\/p>\n

Across the Atlantic, trading may be impacted by reaction to the Labor Department’s closely watched monthly employment report for February. <\/p>\n

Economists expect employment to increase by 182,000 jobs after an increase of 49,000 jobs in January. The unemployment rate is expected to hold at 6.3 percent.<\/p>\n

U.S. stocks tumbled overnight as treasury yields spiked in reaction to comments by Federal Reserve Chair Jerome Powell that the reopening of the economy<\/span> could “create some upward pressure on prices.”<\/p>\n

The Fed chief, however, said he expects the increase in inflation to be “transitory” and stressed there is “a lot of ground to cover” before price growth reaches a sustainable level above the Fed’s 2 percent target.<\/p>\n

The Dow Jones Industrial Average and the S&P 500 slumped 1.1 percent and 1.3 percent, respectively to their lowest closing levels in a month, while the tech-heavy Nasdaq plunged 2.1 percent to a two-month closing low.<\/p>\n

European stocks closed mostly lower on Thursday, with concerns about inflation and high valuations keeping investors nervous. <\/p>\n

The pan European Stoxx 600 eased 0.4 percent. The German DAX slipped 0.2 percent and the U.K.’s FTSE 100 shed 0.4 percent while France’s CAC 40 index ended on a flat note. <\/p>\n<\/p>\n

Business News<\/p>\n<\/div>\n