European Shares Set To Follow Wall Street Higher

(RTTNews) - European stocks may open higher on Wednesday as the record-breaking run on Wall Street continued, boosted by gains in Tesla and mega-cap growth stocks.

Trading volumes are likely to remain thin as U.S. financial markets will close early today at 1 p.m. ET before Thursday's Independence Day holiday.

Asian markets traded mostly higher, though Chinese shares slipped into the red after a private survey showed China's service activity growth hit an eight-month low in June.

Japan's Nikkei average jumped nearly 1 percent as the yen stayed near 38-year lows.

The euro held near a two-week high as opponents of France's National Rally (RN) stepped up their bid to block the far-right party from power.

Voters in the United Kingdom are set to cast ballots in a national election on Thursday, while France prepares for its second round of legislative elections this Sunday.

U.S. Treasury yields came off their recent highs as investors look ahead to the closely watched monthly U.S. jobs report due Friday for clues over Fed rate-cut prospects.

The report is expected to show a slowdown in the pace of job growth in June. Any change in the outlook for the labor market could have significant implications for the direction of the economy and monetary policy.

Both oil and gold eked out modest gains in Asian trade due to dollar weakness.

Final composite Purchasing Managers' survey results from the euro area are due later in the session, headlining a busy day for the European economic news.

Overnight, U.S. stocks struggled for direction before ending on a firm note as Fed Chair Jerome Powell acknowledged progress in disinflation but added that officials need more confidence before cutting interest rates.

Bond yields drifted lower as new data showed an easing in labor market conditions despite a rise in the May job openings.

The S&P 500 rose 0.6 percent to end above 5,500 for the first time ever and the tech-heavy Nasdaq Composite jumped 0.8 percent to a record close while the Dow added 0.4 percent.

European stocks closed lower on Tuesday, reversing some of the previous day's relief rally amid ongoing political uncertainty in France and comments from ECB President Christine Lagarde and her top economist that officials need time to weigh inflation uncertainties.

The pan European STOXX 600 dipped 0.4 percent. The German DAX dropped 0.7 percent, France's CAC 40 eased 0.3 percent and the U.K.'s FTSE 100 shed 0.6 percent.