Frankfurt, Mar. 2, (dpa-AFX/GNA) – European stocks were seen opening mixed on Wednesday as traders slash bets on interest-rate hikes from global central banks.
Rising economic risks tempered investor expectations for how steeply the Federal Reserve will raise interest rates. The outlook for a 50 basis point hike at the March 16 meeting has dissipated, though a smaller 25 basis point hike is seen as a virtual certainty.
Federal funds futures markets now price only a 5% chance of a 50 basis point hike at the upcoming Fed meeting.
Market participants await Fed Chair Jerome Powell’s testimony before the US Congress on Wednesday and Thursday for more clarity on interest rates.
Asian markets were mostly lower and oil prices surged over $5 per barrel after US President Joe Biden announced he was joining US allies in closing the country’s air space to Russian aircraft.
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.
In an annual State of the Union speech, Biden said he would take robust action to protect American businesses and consumers.
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.
Bitcoin extended a two-day rally, leading to broad-based gains in cryptocurrencies.
In economic releases, unemployment data from Germany, British house price figures and the eurozone flash inflation data are due later in the day.
Overnight, US 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.
GNA