European Shares Seen Lower On West Asia Tensions

(RTTNews) - European stocks may open on a tepid note Thursday as investors weigh Middle East risks and await key U.S. data for additional clues on the Fed's rate trajectory.

Investors remain concerned about the prospects of a wider Middle East war, with Israel's war cabinet reportedly weighing its response after Iran launched its largest-ever attack on the country in an escalation of hostilities.

Multiple airstrikes were reported in Beirut earlier today with explosions heard in the Lebanese capital. Authorities said at least six people were killed.

Amid West Asia conflict escalation, several countries have issued advisories and some have evacuated their citizens.

In economic releases, trading later in the day may be impacted by reaction to the latest U.S. economic data, including reports on weekly jobless claims, service sector activity and factory orders.

Services sector PMI figures from Germany and the euro area may influence bets on ECB rate cuts.

The U.S. Labour Department is due to release its more closely watched report on employment for September on Friday.

Economists currently expect the report to show employment climbed by 140,000 jobs in September after an increase of 142,000 jobs in August. The unemployment rate is expected to hold at 4.2 percent.

Asian stocks traded mixed, with Hong Kong's Hang Seng index falling nearly 3 percent on profit taking following recent strong gains.

Japan's Nikkei surged more than 2 percent, tracking a weaker yen after the country's new prime minister damped speculation about another interest-rate increase.

The dollar scaled a more than six-week high versus the yen on PM Shigeru Ishiba's dovish comments.

Treasuries slid and gold was marginally higher as investors await the Fed's next move.

Oil prices rose over 1 percent in Asian trading due to fears of supply disruptions in West Asia.

U.S. stocks ended marginally higher overnight as signs of escalating geopolitical tensions in the Middle East offset data from payroll processor ADP showing stronger than expected private sector job growth in September.

The Dow, the tech-heavy Nasdaq Composite and the S&P 500 all ended flat with a positive bias.

European stocks closed on a mixed note Wednesday as investors remained wary about the possibility of a wider war in the Middle East.

The pan European STOXX 600 ended flat with a positive bias. The German DAX eased 0.3 percent, while France's CAC 40 edged up marginally and the U.K.'s FTSE 100 added 0.2 percent.