European stocks are seen opening lower on Friday after the U.S. Congress voted through a short-term spending bill to avert a government shutdown, but a potential debt default still loomed. <\/p>\n
Republicans say they will not support a debt limit hike as long as the Biden administration and Democrats stick to the ambitious spending plan.<\/p>\n
Treasury Secretary Janet Yellen says that any default on U.S. debt would cause irreparable harm as well as an ensuing financial crisis and recession.<\/p>\n
Investors may also react to fresh comments from Fed Chairman Jerome Powell that the central bank could face difficult decisions next year if inflation remains high.<\/p>\n
Asian stocks fell in thin holiday trade, with Chinese markets<\/span> closed for a week for the Golden Week holiday. <\/p>\n Inflation worries persisted, with central banks of Czechoslovakia, Mexico and Colombia raising rates by 75 bps (to 1.5 percent), 25 bps and 25 bps respectively.<\/p>\n The dollar held steady near its highest level of the year, while gold eased after rallying to a one-week high above the key $1,750 level in the previous session.<\/p>\n Oil prices dipped on the prospect that the OPEC+ supplier alliance might step up a planned increase in output.<\/p>\n It’s another busy day ahead on the European economic calendar, with German retail sales, manufacturing PMI figures and prelim September inflation figures for the euro zone likely to be in focus. <\/p>\n Across the Atlantic, reports on personal income and spending, manufacturing activity, construction spending and consumer sentiment may sway sentiment. <\/p>\n U.S. stocks fell sharply overnight as concerns about the timing and pace of the Fed’s monetary easing plan overshadowed news that the Senate and the House both passed a stopgap spending bill.<\/p>\n The Dow slumped 1.6 percent to reach a three-month closing low, while the S&P 500 shed 1.2 percent and the tech-heavy Nasdaq Composite eased 0.4 percent to end at their lowest closing levels in over two months.<\/p>\n European stocks fell on Thursday amid concerns over rising bond yields and signs of slowing growth. <\/p>\n The pan European Stoxx 600 ended flat with a negative bias. The German DAX dropped 0.7 percent, France’s CAC 40 index declined 0.6 percent and the U.K.’s FTSE 100 eased 0.3 percent. <\/p>\n