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European stocks open to close as recession fears continue

European stocks open to close as recession fears continue

LONDON — European stocks are expected to open lower Thursday, as global markets see renewed volatility after a brief recovery following last week’s tumultuous trading.

The UK’s FTSE index is seen opening 38 points lower at 7.053, Germany’s DAX 79 points lower at 13.079, France’s CAC 40 down 40 points at 5.879, and Italy’s FTSE MIB 161 points lower at 21.528, according to data from IG.

European stocks closed lower on Wednesday, reversing gains made in the previous sessions as global volatility continued and market sentiment shifted to a more negative setting amid fears over surging inflation and slowing economic growth.

US stock futures dipped early on Thursday after the major indexes slipped into the red at the end of regular trading and investors weighed the likelihood of a recession after comments from Federal Reserve chair Jerome Powell.

Powell told Congress on Wednesday that the central bank is “strongly committed” to bringing down inflation after the rate hit a 40-year high in the United States. He also noted that a recession is a “possibility” — a fear that has continued to weigh on Wall Street.

Meanwhile in Asia-Pacific markets overnight, sentiment was more mixed as investors continued to monitor recession concerns.

On the data front in Europe, preliminary services and manufacturing purchasing managers’ index data for June is due for the euro area.

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