European Shares Likely To Open Higher As Focus Shifts To US CPI Data
European stocks may open on a positive note Thursday as investors react to less hawkish Federal Reserve commentary and await U.S. CPI data later in the day for direction.
Boston Fed president Susan Collins said Wednesday that rates are at or near their peak, though further tightening could be warranted depending on incoming information.
Her Atlanta counterpart Raphael Bostic said the U.S. central bank need not raise borrowing costs any further and he sees no recession ahead.
Asian stocks rose broadly, with Hong Kong markets leading regional gains after China’s sovereign wealth fund increased its stake in four of China’s biggest banks and said it plans to continue the purchases to boost market confidence.
The dollar and Treasury yields continued to fall ahead of U.S. weekly jobless claims data and the consumer price inflation report due out later in the day.
According to a Bloomberg survey, U.S. CPI is forecast to have slowed to an annual rate of 3.6 percent in September from 3.7 percent the previous month.
Closer home, British GDP and industrial production figures may attract investor attention.
Gold edged up slightly to test the $1,900 mark on dollar weakness, while oil prices fell for a third day in a row after industry data showed an unexpected increase in crude and gasoline stockpiles in the U.S.
Overnight, U.S. stocks extended gains for the fourth consecutive session as oil prices fell again and the Fed’s September meeting minutes echoed the recent message of data dependence, with around two-thirds of Fed members predicting one more rate hike before the end of 2023.
Traders largely shrugged off data showing that a measure of wholesale prices rose more than expected in September, partly due to a continued surge in energy prices.
The tech-heavy Nasdaq Composite advanced 0.7 percent, while the S&P 500 added 0.4 percent and the Dow rose 0.2 percent.
European stocks ended mixed on Wednesday after logging their biggest gains in nearly a year the previous day.
The pan-European STOXX 600 gained 0.2 percent. The German DAX edged up 0.2 percent, while France’s CAC 40 shed 0.4 percent and the U.K.’s FTSE 100 index slid 0.1 percent.
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