European stocks are likely to open on a firm note Thursday as investors await U.S. weekly jobless claims data and inflation figures later in the day for clues to Federal Reserve’s monetary path.
The U.S. CPI report is forecast show inflation rising 0.2 percent in July, matching the uptick seen in June.
The annual rate of consumer price growth is expected to accelerate to 3.3 percent in July from 3.0 percent in June, while the annual rate of core consumer price growth is expected to hold at 4.8 percent.
Markets are hoping that cooler inflation will push the Fed to end its rate hike campaign.
Asian markets traded mixed amid lingering worries about China slipping into deflation and the announcement of a U.S. ban on new investments in sensitive technologies in China.
U.S. President Joe Biden on Wednesday signed an executive order that will narrowly prohibit certain U.S. investments in China’s high-tech industries that could be used to enhance Beijing’s military capabilities.
The dollar steadied near five-week highs and gold languished near one-month lows while oil slipped from seven-month highs on concerns surrounding inflation and the interest-rate outlook.
U.S. stocks ended a choppy session lower overnight as investors awaited key inflation readings that could provide clues to the Fed’s monetary policy path.
The Dow dropped half a percent, while the S&P 500 shed 0.7 percent and the tech-heavy Nasdaq Composite lost 1.2 percent to reach their lowest closing levels in a month.
European markets closed on a firm note Wednesday, with China stimulus hopes and some clarification from Italy on the bank windfall tax offering support.
The pan European STOXX 600 edged up 0.4 percent. The German DAX rose half a percent, France’s CAC 40 gained 0.7 percent and the U.K.’s FTSE 100 added 0.8 percent.
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