May 18, 2016 / 5:06 AM / 2 years ago

European Factors to Watch-Shares seen lower at open

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report)

LONDON, May 18 (Reuters) - European stocks were seen opening lower on Wednesday, tracking losses on Asian and U.S. equity markets that were caused by renewed expectations that the U.S. Federal Reserve could raise rates later this year.

Financial spreadbetters at IG expected Britain’s FTSE 100 to open down by 20 points, or 0.3 percent lower. Germany’s DAX was seen down by 51 points, or 0.5 percent lower, while France’s CAC was seen down by 15 points, or 0.4 percent lower.

On Tuesday, data showed that U.S. consumer prices recorded their biggest increase in more than three years in April, pointing to a steady inflation build-up that could give the Federal Reserve ammunition to raise interest rates later this year.

A U.S. Federal Reserve policymaker also said on Tuesday that he would push for an interest rate hike in June or July while two others still saw up to three rate increases this year, leaving the door open to a change in monetary policy relatively soon, and that backdrop hit the Wall Street stock market. ——————————————————————————————————————— > GLOBAL MARKETS-Revived U.S. rate hike views weigh on Asian shares; oil up > US STOCKS-Wall St sells off amid Fed rate hike jitters > Nikkei rises on strong U.S. data, weaker yen > TREASURIES-Short-dated yields near 3-week high as data opens door to rate hike > FOREX-Yen gains after upbeat Japan GDP pares stimulus bets > METALS-London copper slips as dollar stays strong on US rate hike view > Oil prices remain near 2016 highs on global supply disruptions

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

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Mike Dolan, Markets Editor EMEA. (Reporting by Sudip Kar-Gupta)

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