BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening broadly lower on Wednesday, though London's FTSE 100 index may benefit from elevated crude oil prices, driven by escalating tensions in Iran and potential U.S. intervention.
A cautious undertone may prevail as investors await cues from earnings and a potential U.S. Supreme Court ruling on tariffs the White House has been enforcing.
Following JPMorgan's results Tuesday, earnings from rivals Bank of America Corp., Wells Fargo & Co., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley are slated for today and Thursday.
An adverse apex court ruling on tariffs could draw a negative market reaction, despite U.S. Treasury Secretary Scott Bessent assuring the department has sufficient funds to pay any potential tariff refunds.
Asian stocks were mostly higher, with Japan's Nikkei extending a record run, driven by a weaker yen on speculation of a snap election.
There was also some cheer on the data front, with China's trade surplus surging to new highs in December as exports growth sharply beat expectations.
Copper prices rose to a new ?record high as lingering supply concerns outweighed a stronger dollar.
The U.S. dollar hovered near a one-month high as in-line inflation data and Federal Reserve Bank of Richmond President Thomas Barkin's remarks supported expectations of a prolonged Fed pause.
Gold rose toward a record high, rising more than 1 percent to trade above $4,630 an ounce amid ongoing geopolitical uncertainty.
Brent crude futures edged down slightly after notching their biggest four-day gain since June, as Trump ramped up rhetoric on Iran, threatening the country with military intervention, and asking Iranians to continue their nationwide protests, take over institutions and record the names of 'killers and abusers'.
Overnight, U.S. stocks fluctuated before ending lower as JPMorgan Chase kicked off bank earnings with a mixed quarter and investors grappled with a raft of Donald Trump proposals in the past few days over credit card price controls, defense industry shareholder awards and executive pay, and costs of powering AI data centers.
Markets shrugged off data that showed U.S. consumer prices rose 2.7 per cent year-on-year in December, in line with expectations.
The Dow dipped 0.8 percent, the tech-heavy Nasdaq Composite eased 0.1 percent and the S&P 500 gave up 0.2 percent.
European stocks ended little changed on Tuesday after a cautious session amid mixed earnings updates and heightened geopolitical tensions.
The pan European Stoxx 600 edged down marginally. While the German DAX finished marginally higher, France's CAC 40 slid 0.1 percent and the U.K.'s FTSE 100 edged down marginally.
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