European Shares Seeking Rebound

European markets are set to open a tad higher on Friday after U.S. stocks recovered from early losses to finish modestly higher overnight.

The dollar gained some reprieve against a basket of currencies as solid U.S. economic data put the focus back on a widely anticipated rate increase at the Fed’s June meeting.

Also, the Trump administration took the first step toward renegotiating the North American Free Trade Agreement, helping ease concerns over the president’s ability to deliver on his economic agenda.

Asian stocks are trading mixed while the dollar sagged against the yen amid deepening political turmoil in Washington and the Brazilian political crisis.

Brazil’s real, stocks and bonds tumbled as President Michel Temer faced calls for impeachment in the wake of a corruption scandal. But Temer said he would not resign and prove his innocence in the Supreme Court.

Amid lack of triggers, investors looked forward to remarks by St. Louis Federal Reserve President James Bullard and San Francisco Fed President John Williams later in the day and next week’s testimony to the Senate by former FBI Director James Comey for further direction.

Oil extended gains for the third straight session on optimism over an extension to OPEC’s production curbs, while gold clawed back some of Thursday’s losses.

The Dow rose 0.3 percent overnight, the S&P 500 gained 0.4 percent and the tech-heavy Nasdaq Composite advanced 0.7 percent, with rising oil prices and a string of positive economic data on jobless claims, regional manufacturing activity and leading economic indicators helping underpin investor sentiment.

European markets retreated for a second straight session on Thursday, but finished well off their intraday lows. The pan-European Stoxx Europe 600 index dropped half a percent.

The German DAX slid 0.3 percent, France’s CAC 40 index dropped half a percent and the U.K.’s FTSE 100 shed 0.9 percent.

by RTT Staff Writer

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