European Shares Seen Opening Up As French Political Worries Ease

(RTTNews) - European stocks are likely to open higher on Wednesday after the S&P 500 posted another record close overnight.

French political worries subsided, with parties making up the New Popular Front (NFP) claiming they have the right to govern and centrists seeking a role as the left lacks a majority.

The NFP won the most seats in the National Assembly but fell short of an absolute majority by about 100 seats. President Emmanuel Macron's centrists came second and the far-right National Rally (RN) third.

Asian markets traded mixed after Federal Reserve Chair Jerome Powell reiterated caution on rates, saying high inflation remains a risk.

Powell is scheduled to appear today before the House Financial Services Committee ahead of key U.S. data on consumer and producer price inflation.

Thursday's CPI data is expected to show consumer prices eased to 3.1 percent in June from 3.3 percent in May. A report for inflation at the wholesale level is expected Friday.

Focus also remain on the U.S. earnings season, with Delta Air Lines set to report its results on Thursday while top banks JPMorgan, Citigroup and Wells Fargo will unveil their earnings on Friday.

The dollar rose from a three-week low and gold edged up slightly while oil extended losses for a fourth day running as supply concerns due to Hurricane Beryl eased and investors weighed the rising possibility of a ceasefire deal in Gaza.

U.S. stocks ended narrowly mixed overnight as yields moved up after Powell told a Senate Banking Committee that inflation continues to moderate but "more good data" would strengthen the case for rate cuts.

He also noted that reducing policy restraint too late or too little could unduly weaken economic activity and employment.

The tech-heavy Nasdaq Composite edged up 0.1 percent and the S&P 500 inched up marginally to reach new record closing highs while the Dow slid 0.1 percent.

European stocks closed on a sluggish note Tuesday as uncertainty loomed for the euro after the French election.

The pan European STOXX 600 declined 0.9 percent. The German DAX dipped 1.3 percent, France's CAC 40 tumbled 1.6 percent and the U.K.'s FTSE 100 gave up 0.7 percent.