BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening lower on Thursday, with tech stocks likely to be in focus after Broadcom delivered a disappointing forecast for artificial intelligence chip revenue, raising fresh concerns about the durability of the artificial-intelligence rally that has driven global equities to record highs in recent weeks.
As inflation and rate concerns mount, traders may also keep a close eye on the latest Middle East developments and oil price movements.
Federal Reserve Bank of Dallas President Lorie Logan on Wednesday said she believes it's taking too long for inflation to return to the central bank's 2 percent target and therefore officials may need to raise interest rates later this year.
Separately, New York Fed President John Williams said U.S. monetary policy is in right place, but he sees no obvious direction for the future path of interest rates.
Closer home, ECB board member Pierre Wunsch noted that any developments concerning a peace agreement in the Midde East would become an important part of the discussions within the central bank during the upcoming June meeting.
Eurozone retail sales data, ECB President Lagarde's speech and U.S. weekly jobless claims figures may garner attention later in the day ahead of the U.S. government's all-important monthly employment report due on Friday.
U.S. stock index futures edged lower and Asian markets were deep in the red following middling earnings and forecast from chip designer Broadcom.
Renewed U.S.-Iran fighting and a lack of progress towards a peace deal also spooked markets.
Iran said communication channels with Washington remain open but there has been 'no tangible progress' to end the war.
In contrast, U.S. President Donald Trump said progress in talks with Iran could come within days, with possible movement as early as the weekend.
The dollar eased but held near a two-month high. Gold rebounded nearly 1 percent to $4,475 an ounce on hopes for a resolution to the U.S.-Israeli war on Iran.
Brent crude futures fell toward $97 a barrel after three consecutive sessions of gains. Some relief emerged after Israel and Lebanon agreed to a ceasefire following negotiations in Washington.
U.S. stocks ended lower overnight, with the latest skirmish between the U.S. and Iran, concerns over stretched valuations and shifting monetary policy expectations leading to profit taking after strong gains over the past week.
The U.S. and Iran exchanged strikes and the Gulf region witnessed a surge in hostilities, raising concerns about the durability of a fragile ceasefire.
Upbeat economic data helped limit overall losses to some extent, with the services sector expanding at an accelerating pace and private payrolls increasing more than expected in May.
The Fed's Beige Book report found that U.S. businesses endured another month of energy-driven price increases amid the Iran conflict.
The S&P 500 dropped 0.7 percent to snap a nine-day winning streak, while the Dow gave up 1.2 percent and the tech-heavy Nasdaq Composite declined 0.9 percent.
European stocks ended lower on Wednesday as fresh U.S.-Iran clashes coupled with no meaningful breakthrough in peace talks underscored the ongoing risks facing energy markets and Gulf shipping.
Fresh jitters over private credit markets, tariff worries and concerns about inflation and interest rates also weighed on markets.
The pan-European STOXX 600 fell 0.7 percent. The German DAX lost 1.3 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 dipped 0.4 percent.
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