(RTTNews) – European stocks are expected to open lower on Friday after the U. S. Congress approved a short-term spending bill to avoid a government shutdown, but a potential default is still looming.
Republicans say they won’t raise the debt limit as long as Biden’s leadership and Democrats stick to the ambitious spending plan.
Treasury Secretary Janet Yellen said any default on U. S. debt would cause irreparable damage, such as a currency crisis and a recession that would ensses.
Investors may also react to new comments from Fed Chairman Jerome Powell that the central bank could face tough decisions next year if inflation remains high.
Inflationary fears persisted, with the central banks of Czechoslovakia, Mexico and Colombia raised rates in bps (to 1. 5%), 25 bps and 25 bps respectively.
The dollar remained solid near its point of the year, while gold was down after touching a one-week high above the key point of $1,750 in the last session.
Oil costs have fallen on the prospect that OPEC’s supplier alliance can simply drive a planned increase in production.
It’s a busy day in the European economic calendar, with German retail sales, production PMI figures and initial September inflation figures for the euro zone most likely at the centre of concerns.
U. S. stocks fell sharply overnight, as considerations about the timing and speed of the Fed’s easing plan overshadowed news that the Senate and House passed interim spending bills.
The Dow Jones fell 1. 6% to a final three-month low, while the S
European stocks fell on Thursday on considerations of EMERGING market bond yields and symptoms of slowing growth.
The pan-European six-hundred Stoxx ended flat with a negative bias: Germany’s DAX fell 0. 7%, France’s CAC 40 index fell 0. 6% and the UK’s FTSE 100 fell 0. 3%.