BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open on a subdued note Thursday, with U.S. shutdown worries, trade concerns and caution ahead of the earnings season likely to keep investors on edge.
The U.S. government remains in shutdown as the Senate failed for the sixth time to pass either Republican- or Democratic-backed funding bills.
China has tightened curbs on rare earths to include items manufactured abroad, adding another layer of complexity to Sino-U.S. trade tensions.
Elsewhere in France, President Emmanuel Macron said he would appoint a new prime minister within the next 48 hours to resolve the ongoing political crisis.
Focus also remains on upcoming addresses by Federal Reserve officials, including Fed Chair Jerome Powell, who is set to speak at 08:30 ET.
Amid growing anxiety over economic risks, investors are looking for cues on the Fed's easing plans.
Global economy is coping with shocks in a better-than-expected manner, but there is a risk that the resilience has not yet been fully tested, International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday. She cautioned that the tariff crisis is not yet over as U.S. rates keep moving.
Meanwhile, the third-quarter earnings season is set to begin in earnest, with PepsiCo Inc and Delta Air Lines Inc set to report later today, followed by a host of major Wall Street banks next week.
Closer home, foreign trade data from Germany and the minutes of the monetary policy meeting of the European Central Bank may garner some attention as the session progresses.
Asian markets traded higher as China returned from holidays. Traders are seeking clues about potential policy changes after the Golden Week results indicated that consumer spending in China remains weak.
The dollar held steady and was on track for its best week in nearly a year. Gold edged lower but still traded above $4,000 an ounce.
Oil prices fell as Israel and Hamas agreed to the 'first phase' of U.S. President Donald Trump's peace plan to pause fighting and release at least some hostages and prisoners, making a major breakthrough in the U.S.-brokered negotiations to end their two-year war.
Overnight, U.S. stocks ended broadly higher, with tech stocks leading the way after reports suggested that Nvidia will invest $2 billion into a $20 billion equity and debt funding round for Elon Musk's AI venture.
On the economic front, data showed home loan applications in the U.S. declined for a second week in a row, but at a slower pace.
The minutes covering the Fed's Sept. 16-17 policy meeting signaled more rate cuts could be in play for the rest of 2025 despite steep divisions within the central bank about the outlook for jobs and inflation.
The tech-heavy Nasdaq Composite and the S&P 500 gained 1.1 percent and 0.6 percent, respectively to reach new record closing highs while the narrower Dow ended marginally lower.
European markets closed on a firm note on Wednesday after the European Commission proposed measures to protect the EU's domestic steel industry.
The pan-European Stoxx 600 advanced 0.8 percent. The German DAX climbed 0.9 percent, France's CAC 40 rallied 1.1 percent and the U.K.'s FTSE 100 added 0.7 percent.
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