BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open flat to slightly lower on Wednesday as oil prices retreated and investors looked forward to an interest rate cut by the U.S. Federal Reserve later today.
Oil extended steep losses from the previous session after Saudi Arabia reassured markets, saying that full production would be restored by month's end. Earlier, there were fears that the outage in Saudi Arabia following weekend attacks on production facilities might take months to clear.
The Fed's monetary policy announcement is likely to be in the spotlight today amid expectations the U.S. central bank will lower interest rates by another 25 basis points.
Traders will likely pay closer attention to the accompanying statement for clues about the long-term outlook for rates.
Closer home, consumer and producer prices data from the U.K. are due later in the session, headlining a light day for the European economic news.
Asian stocks are trading mixed amid skepticism whether the next round of face-to-face talks between U.S. and Chinese officials this week would lead to a speedy resolution of a long-running trade dispute.
Gold held steady while the dollar held near a seven-week high versus the yen.
The British pound traded near a six-week high versus the dollar as the U.K.'s highest appeals court hears two cases against Brexit which were decided in Scotland and London.
Overnight, U.S. stocks eked out modest gains as President Donald Trump leaned against striking Iran and oil prices dropped after reports that Saudi Arabia was close to restoring 70 percent of its lost production.
Meanwhile, economic reports on industrial production and homebuilder confidence painted a positive picture of the world's largest economy.
The Dow Jones Industrial Average inched up 0.1 percent, while the tech-heavy Nasdaq Composite gained 0.4 percent and the S&P 500 added 0.3 percent.
European markets ended mostly lower on Tuesday as oil prices reversed course and investors awaited developments from the next round of U.S.-China trade talks.
The pan European Stoxx 600 ended flat with a negative bias. The German DAX slid 0.1 percent and the U.K.'s FTSE 100 finished marginally lower, while France's CAC 40 index inched up 0.2 percent.
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