<\/p>\n\n\n\n
European stock markets retreated Thursday, mirroring Wall Street\u2019s sharp selloff as investors grew increasingly uneasy about the deepening U.S. fiscal deficit and the fading prospects for a resolution to the Russia-Ukraine conflict.<\/p>\n\n\n\n
At 03:05 ET (07:05 GMT), the DAX index<\/strong> in Germany fell 0.4%, France\u2019s CAC 40<\/strong> slipped 0.4%, and the FTSE 100<\/strong> in the U.K. declined 0.3%, as risk appetite weakened across the board.<\/p>\n\n\n\n The downbeat tone in European trading followed the fallout from the U.S., where the House of Representatives is preparing to vote on a controversial tax-cut and spending bill<\/strong>. The legislation would extend key parts of the 2017 Trump tax cuts and is projected by the Congressional Budget Office to add $3.8 trillion to the national debt<\/strong> over the next decade, pushing the total past $36 trillion<\/strong>.<\/p>\n\n\n\n This fiscal trajectory was a core reason behind Moody\u2019s recent downgrade<\/strong> of the U.S. credit rating, adding to concerns that America’s growing debt load could spark long-term inflationary and economic risks.<\/p>\n\n\n\n JPMorgan CEO Jamie Dimon<\/strong> warned on Thursday that stagflation<\/strong> \u2014 a toxic mix of stagnation and inflation \u2014 could hit the U.S. economy amid mounting pressure from fiscal imbalances and geopolitical instability.<\/p>\n\n\n\n Adding to the risk-off sentiment, reports emerged that hopes for a near-term Ukraine-Russia ceasefire are diminishing<\/strong>. The Wall Street Journal<\/strong> reported that President Donald Trump<\/strong> told European leaders in a private call that Vladimir Putin sees no reason to stop the war<\/strong>, believing that Russia has the upper hand.<\/p>\n\n\n\n The report marks a stark departure from Trump\u2019s earlier statements, in which he expressed optimism about peace prospects. The lack of progress is expected to fuel further geopolitical tensions in Europe and complicate ongoing diplomatic efforts.<\/p>\n\n\n\n Attention now turns to key flash PMI surveys<\/strong> for May, with data on eurozone manufacturing and services activity<\/strong> due Thursday. Economists expect relatively flat readings compared to April, amid global trade uncertainty and muted demand.<\/p>\n\n\n\n On the corporate front:<\/p>\n\n\n\n In commodities, crude oil prices dropped sharply<\/strong> Thursday following a surprise build in U.S. inventories<\/strong> and renewed uncertainty surrounding U.S.-Iran nuclear negotiations<\/strong>.<\/p>\n\n\n\n The U.S. Energy Information Administration (EIA)<\/strong> reported a 1.3 million-barrel increase in stockpiles<\/strong>, versus expectations for a drawdown, raising fresh concerns about U.S. demand levels.<\/p>\n\n\n\n Oil prices were also pressured by news that nuclear talks between Washington and Tehran will resume on Friday in Rome<\/strong>. Earlier this week, prices had rallied following a CNN report suggesting Israel is preparing for a military strike on Iranian nuclear facilities<\/strong>, which could severely impact regional oil flows.<\/p>\n\n\n\n With fiscal risks mounting in the U.S., geopolitical pressures intensifying, and oil markets whipsawed by both diplomacy and potential conflict, European investors face a challenging near-term outlook. All eyes are now on the U.S. House vote and Friday\u2019s eurozone PMI data for clues on market direction.<\/p>\n","protected":false},"excerpt":{"rendered":" European stock markets retreated Thursday, mirroring Wall Street\u2019s sharp selloff as investors grew increasingly uneasy about the deepening U.S. fiscal deficit and the fading prospects for a resolution to the Russia-Ukraine conflict. At 03:05 ET (07:05 GMT), the DAX index in Germany fell 0.4%, France\u2019s CAC 40 slipped 0.4%, and the FTSE 100 in the …<\/p>\n","protected":false},"author":9,"featured_media":70012,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,36],"tags":[],"class_list":["post-114736","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=114736"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114736\/revisions"}],"predecessor-version":[{"id":114737,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/114736\/revisions\/114737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/70012"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=114736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=114736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=114736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}U.S. Budget Concerns Spill Into Europe<\/h3>\n\n\n\n
Ukraine Peace Prospects Fade<\/h3>\n\n\n\n
Eurozone Business Surveys, Corporate Updates<\/h3>\n\n\n\n
\n
Oil Slides on Inventory Surprise, Nuclear Talks<\/h3>\n\n\n\n
\n
\n\n\n\n