BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open lower on Tuesday, as concerns over global growth prospects and expectations for another rate rise from the Fed dented appetite for riskier assets.
Safe-haven assets such as gold and the Japanese yen ticked higher as the U.S. dollar stayed under selling pressure ahead of a two-day policy meeting of the Federal Reserve starting later in the day.
Investors see a 25 bps hike in the fed funds target range, with more dovish commentary expected in the face of rising risks to global growth.
Asian stock markets remain broadly lower, with benchmark indexes in Australia, Hong Kong and Japan falling 1-2 percent after Chinese President Xi Jinping offered no new specific measures for the implementation of reforms in a highly anticipated speech that marked the 40th anniversary of China's reform.
Meanwhile, U.K. Prime Minister Theresa May said on Monday that another Brexit referendum would 'break faith with the British people' and she would bring the deal back to parliament for a mid-January vote.
U.S. oil prices fell nearly 2 percent in Asian trade after ending down over 1 percent below $50 a barrel in the previous session on concerns about oversupply.
Overnight, U.S. stocks sold off for a second straight session, as manufacturing and housing data disappointed, President Donald Trump renewed his attacks on the Federal Reserve and a federal judge in Texas struck down the Affordable Care Act.
The Dow lost 2.1 percent to hit its lowest closing level in over eight months, while the tech-heavy Nasdaq Composite slumped 2.3 percent and the S&P 500 plunged 2.1 percent to reach their lowest closing levels in over a year.
European markets ended Monday's session firmly in the red as growth worries persisted and a profit warning from Asos sent retail stocks tumbling.
The pan-European Stoxx Europe 600 index gave up 1.1 percent. The German DAX dropped 0.9 percent, while France's CAC 40 index and the U.K.'s FTSE 100 both shed around 1.1 percent.
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