European Shares Set For Lower Open

(RTTNews) - European stocks are set to open lower on Thursday after U.S. stocks fell the most in more than 18 months overnight, led by steep declines for technology stocks.

However, gains in U.S. equity futures may help limit losses after IBM's second-quarter results surpassed revenue and earnings expectations.

On the contrary, Ford shares fell sharply in extended trading after the carmaker reported second-quarter earnings far below analysts' expectations.

American Airlines and Honeywell are among the companies due to report their quarterly results before the U.S. opening bell later today.

In economic releases, trading later in the day may be impacted by reaction to reports on durable goods orders, jobless claims and second quarter GDP.

An inflation reading on Friday and a Federal Reserve meeting next week also remain on investors' radar after former New Federal Reserve President Bill Dudley called for the Fed to cut rates now to avoid a recession.

The U.S. yield curve steepened sharply, signaling that the Fed might cut rates faster and deeper than previously anticipated.

Gold dropped below $2,400 per ounce while oil prices fell nearly 1 percent in Asian trade on concerns over weak demand in China, the world's largest crude importer.

Asian markets followed Wall Street lower, with benchmark indexes in Australia, New Zealand, South Korea and Hong Kong falling over 1 percent.

As growth concerns mount, China's central bank today unexpectedly cut a key policy rate and interest paid on bank deposits.

Japan's Nikkei average was down nearly 3 percent as the dollar fell to its lowest in more than two months against the yen amid growing bets for a hawkish stance at next week's Bank of Japan meeting.

France July business confidence survey results and the release of Germany's July Ifo business climate index may influence trading sentiment later in the day.

U.S. stocks fell the most in more than 18 months overnight as disappointing earnings from Tesla and Alphabet fueled concerns the frenzy around artificial intelligence technology might be overblown.

In economic news, data showed new home sales fell to a seven-month low in June.

The tech-heavy Nasdaq Composite plummeted 3.6 percent to reach its lowest closing level in over a month, while the S&P 500 slumped 2.3 percent and the Dow tumbled 1.3 percent.

European stocks closed lower on Wednesday as investors reacted to a deluge of earnings and data showing business activity in the eurozone slowed further in July.

The pan European STOXX 600 dropped 0.6 percent. The German DAX shed 0.9 percent, France's CAC 40 lost 1.1 percent and the U.K.'s FTSE 100 eased 0.2 percent.