European Shares Poised For Flat OpeningAugust 5, 2021
European stocks look set to open a tad lower on Thursday after a mixed day on Wall Street following the release of the Federal Reserve policy statement.
Asian markets were broadly higher as the Fed set no timeline for tapering stimulus and Chinese authorities moved to soothe jitters over anti-monopoly and data security enforcement against the tech industry.
Gold climbed to over one-week high after Fed Chair Jerome Powell’s dovish remarks sent the U.S. dollar index to a more than two-week low. U.S. Treasury yields also fell while oil edged up after a large inventory drawdown.
Flash consumer price and unemployment data from Germany as well as the account of the monetary policy meeting from the European Central Bank are due later in the session, headlining a busy day for the European economic news.
Across the Atlantic, data on jobless claims for the week ended July 24th, second quarter GDP data and a report on personal consumption expenditure are due later in the day.
U.S. stocks ended mixed overnight as investors reacted to a slew of corporate earnings updates and Fed Chair Jerome Powell’s dovish presser.
Fed officials tried to strike a balance, discussing about how to go about scaling back bond buying when the time comes.
Powell said there was “more ground to make up” in the labor market to meet substantial further progress threshold to taper bond purchases.
The tech-heavy Nasdaq Composite index rose 0.7 percent after strong results from Apple, Alphabet and Microsoft, while the Dow shed 0.4 percent and the S&P 500 finished marginally lower.
European stocks rebounded Wednesday after two successive days of losses amid a busy day for corporate earnings.
The pan European Stoxx 600 advanced 0.7 percent. The German DAX edged up 0.3 percent, France’s CAC 40 index rallied 1.2 percent and the U.K.’s FTSE 100 rose 0.3 percent.
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