European Shares Set For Lower Open On Recession Worries

(RTTNews) - European stocks may open on a tepid note Thursday as hawkish comments from central bank chiefs stoked recession fears.

Asian markets fell broadly, though China's Shanghai Composite index rose over 1 percent after the latest manufacturing and services data for June showed improvement.

The dollar index held at a two-week high while U.S. Treasury yields dipped, helping limit downside in gold. Oil edged up slightly after declining about 2 percent on Wednesday.

A report on U.S. personal income and spending is likely to be in the spotlight later today, as it includes a reading on inflation said to be preferred by the Fed.

U.S. stocks fluctuated before closing mixed overnight and bond yields tumbled as Fed Chair Jerome Powell reiterated his hawkish stance on fighting inflation and cautioned there's no guarantee the Fed can engineer a "soft landing."

Investors also digested data showing that U.S. GDP shrank at an annual pace of 1.6 percent in the first quarter, slightly more than earlier estimates.

The Dow edged up 0.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 finished marginally lower.

European stocks fell on Wednesday on recession worries as ECB President Christine Lagarde and Bank of England governor Andrew Bailey stuck to their hawkish stance.

The pan European Stoxx 600 declined 0.7 percent. The German DAX plunged 1.7 percent, France's CAC 40 index shed 0.9 percent and the U.K.'s FTSE 100 slipped 0.2 percent.