European Shares Set For Steady Start Despite Recession Worries

European stocks may open flat to slightly higher on Tuesday despite rising risks of a global recession.

Asian markets were seeing marginal gains in cautious trade, while the dollar held near a one-week high.

Oil extended recent loses on worries over fuel demand and the prospect of more Iranian supply.

Industrial metals such as copper and aluminum declined, and commodity-linked currencies fell, as underwhelming Chinese and U.S. economic data revived fears of a global slowdown.

Gold traded flat after falling more than one percent to a one-week low on Monday.

Benchmark U.S. 10-year Treasury yields fell for a third session as investors await minutes from the Fed’s July meeting due on Wednesday for clues on further rate hikes.

U.S. stocks reversed course to end higher overnight even as disappointing Chinese and U.S. economic data complicated the economic outlook.

New York state manufacturing activity plummeted in August and a gauge of homebuilder sentiment declined for an eighth-straight month, sending Treasury yields lower.

The Dow rose half a percent, the S&P 500 edged up 0.4 percent and the tech-heavy Nasdaq Composite added 0.6 percent amid bets that moderating inflation will help the Fed to slow the pace of interest-rate hikes.

European stocks fluctuated before closing higher Monday on the back a surprise interest rate cut by China’s central bank. The pan European Stoxx 600 inched up 0.3 percent.

The German DAX gained 0.2 percent, France’s CAC 40 rose 0.3 percent and the U.K.’s FTSE 100 edged up 0.1 percent.

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