European Shares May Open On Firm NoteJune 9, 2021
European stocks may open higher on Thursday as investors shrugged off Fed comments on a potential reduction in stimulus as well as news reports suggesting that U.S. President Joe Biden plans to amend a U.S. ban on investments in companies linked to China’s military this week.
Philadelphia Fed President Patrick Harker said it’s appropriate “to slowly, carefully move back” on asset purchases at the appropriate time, and to avoid any kind of “taper tantrum.”
Asian markets are trading mixed and ten-year U.S. Treasury yields dipped below 1.60 percent while oil prices rose for a third day on expectations for a surge in fuel demand later this year.
The dollar held steady and gold hovered near a five-month high, as investors looked ahead to Friday’s U.S. jobs report for further clues about the economic recovery and the interest rate outlook.
Economists expect the report to show employment jumped by 664,000 jobs in May after climbing by 266,000 jobs in April. The unemployment rate is expected to dip to 5.9 percent from 6.1 percent.
ADP’s private sector jobs report may attract attention later today along with reports on initial jobless claims and service sector activity.
Composite Purchasing Managers’ survey results from euro area are due later in the session, headlining a light day for the European economic news.
The major U.S. averages all inched up around 0.1 percent overnight, as inflation worries persisted and the Fed’s Beige Book showed economic growth increased at a “moderate pace” from early April to late May.
European stocks ended modestly higher on Wednesday after staying somewhat sluggish for much of the day’s session.
The pan European Stoxx 600 gained 0.3 percent. The German DAX edged up 0.2 percent, France’s CAC 40 index rose half a percent and the U.K.’s FTSE 100 added 0.4 percent.
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