European Shares To Open Mostly Lower On Rate Worries, Gaza Ceasefire Uncertainty

(RTTNews) - European stocks are seen opening broadly lower on Wednesday as investors assess the Federal Reserve's interest rate stance and keep a wary eye on the ongoing conflict in the Middle East.

The U.S. dollar held firm as traders repriced their expectations for interest rate cuts.

Minneapolis Federal Reserve President Neel Kashkari said Tuesday that rates will likely stay high for an "extending period" and that he would support a hike if inflation stalls near 3 percent.

Investors also wait for further news on events surrounding the Gaza conflict. Israeli troops seized control of Gaza's vital Rafah border crossing on Tuesday as captive-exchange talks continue.

The United States has played down the deadly Israeli assault on Rafah and expressed hope that a ceasefire deal with Hamas was within reach.

Asian stocks slipped into the red, with Japanese markets leading regional losses following the previous session's sharp rise.

Gold edged up slightly while oil extended declines from the previous session as industry data pointed to rising U.S. stockpiles.

In economic releases, Destatis is scheduled to issue Germany's industrial production data for March later in the day. Output is expected to fall 0.6 percent on month, in contrast to the 2.1 percent rise in February.

Overnight, U.S. stocks gave up early gains to end on a flat note as investors awaited more clarity on when the Federal Reserve may start cutting interest rates.

The Dow finished marginally higher to extend gains for the fifth consecutive session and reach a one-month high.

The S&P 500 inched up 0.1 percent to close higher for a fourth straight session while the tech-heavy Nasdaq Composite slipped 0.1 percent.

European stocks rose for a third straight session Tuesday on the back on encouraging bank earnings and solid economic data.

The pan European STOXX 600 jumped 1.1 percent. The German DAX rallied 1.4 percent, France's CAC 40 added 1 percent and the U.K.'s FTSE 100 climbed 1.2 percent.