European Shares May See Tepid Opening

European stocks may open slightly lower on Friday as crude oil prices pulled away from ten-month lows and the dollar held little changed ahead of U.S. inflation, housing and revised first-quarter GDP data due next week.

Commodity currencies strengthened on the back of an overnight rebound in oil prices while gold held steady above a five-week low touched earlier this week.

Asian stocks are trading on a mixed note, with Chinese markets leading regional losses, after the country’s banking regulator ordered leading banks to check the “systemic risk” presented by “some large enterprises” that have been on an overseas buying spree.

In economic releases, British households perceived that the value of their home increased in June, albeit at a slower rate than in the previous month, survey figures from IHS Markit and Knight Frank showed.

The house price sentiment index declined to 53.3 in June. The index has been steadily ticking down for the last three months suggesting that the perceived rate of house price growth is slowing.

Traders await a slew of PMI data from the euro zone, U.S. data on new home sales and remarks by several Federal Reserve officials later in the day.

Overnight, U.S. stocks erased early gains to close mostly lower. The Dow and the S&P 500 slid around 0.1 percent while the tech-heavy Nasdaq edged up marginally, led by healthcare and biotechnology stocks as Senate Republicans released a “discussion draft” of the health-care bill that aims to repeal and replace Obamacare.

European markets ended Thursday’s session with mixed results. The pan-European Stoxx Europe 600 index closed marginally higher as gains in the healthcare sector offset weakness in the energy sector.

The German DAX and France’s CAC 40 index both inched up 0.2 percent while the U.K.’s FTSE 100 eased 0.1 percent.

by RTT Staff Writer

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