European Shares Set To Extend Losses Amid Risk Aversion

Group 1 - European stocks are expected to open cautiously due to ongoing concerns about tech valuations and the outlook for U.S. interest rates [1] - Nvidia is set to release its third quarter results, which could significantly influence the broader artificial intelligence industry's prospects [2] - Major retailers such as Walmart, Home Depot, and Target are also reporting earnings this week, which are viewed as indicators of consumer spending [2] Group 2 - Upcoming economic reports include factory orders, the U.S. trade deficit, and ADP employment, along with the September jobs report, which may affect interest rate outlooks [3] - The CME Group's FedWatch Tool indicates a 55.1% chance that the Federal Reserve will keep rates unchanged next month, with a 44.9% chance of a quarter-point rate cut [4] Group 3 - U.S. stock futures have extended losses, and Asian markets are experiencing significant declines, reflecting broader risk aversion [5] - Gold prices have fallen for four consecutive sessions, influenced by a strong dollar and reduced expectations of a Fed rate cut [5] - Oil prices are declining as investors assess the impact of a potential global surplus against U.S. sanctions on Russia [5] Group 4 - U.S. stock indices have seen declines, with the Dow down 1.2%, Nasdaq Composite down 0.8%, and S&P 500 down 0.9%, reflecting concerns over the economic outlook [6] - European stocks closed lower, with the pan-European Stoxx 600 down 0.5%, and major indices like the German DAX and France's CAC 40 also experiencing losses [6]