The German market is moderately higher on Thursday, following the previous session's sharp sell-off, after the country's unemployment rate dropped and Eurozone inflation slowed more than expected in May.
European Central Bank president Mario Draghi has reportedly said that the eurozone setup is unsustainable and that leaders have to decide what they want the bloc to be in future. The central bank cannot fill the "vacuum" left by governments, Draghi warned.
As Ireland votes in a referendum, opinion polls seem to be showing that the country will back the new German-backed EU fiscal treaty. Results are expected by Friday afternoon.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.62 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.46 percent.
The DAX index opened slightly higher and is currently adding 0.36 percent.
Department stores operator Metro is climbing 2.5 percent, thus leading the gainers on the index.
SAP is up 1.8 percent. UBS raised the business software maker to "Buy" from "Neutral."
Commerzbank and Deutsche Bank are moderately higher.
Volkswagen is notably higher and Daimler is modestly up. BMW is in negative territory.
HeidelbergCement is up 0.3 percent. The stock was downgraded to "Equalweight" from "Overweight" at Morgan Stanley.
Chemicals firm Lanxess is up about 1 percent. Commerzbank raised the stock to "Buy" from "Add."
Deutsche Post is losing 1.5 percent.
Elsewhere in Europe, the French CAC 40 is advancing 0.64 percent and the UK's FTSE 100 is adding 0.76 percent. Switzerland's SMI is up 0.05 percent.
In economic news, a report from the Federal Labor Agency showed that the number of unemployed in Germany remained unchanged in May. In April, the number of unemployed increased by a revised 18,000. Economists had forecast unemployment to decline by 7,000 persons this month.
Meanwhile, the unemployment rate edged down to 6.7 percent from 6.8 percent in April. Economists expected the rate to hold steady at 6.8 percent for a fifth straight month.
Eurozone inflation slowed more than expected in May, flash estimates from Eurostat showed. Annual inflation fell to 2.4 percent from 2.6 percent in April, slightly below the expected rate of 2.5 percent.
Fears concerning Europe hurt markets across Asia/Pacific too. Additionally, Xinhua said there was no plan to introduce stimulus measures of the scale unleashed during the depths of the global financial crisis in 2008 to revive growth.
Australia's All Ordinaries slid 0.4 percent, China's Shanghai Composite Index fell 0.5 percent and Hong Kong's Hang Seng dropped 0.3 percent. Japan's Nikkei 225 retreated 1.1 percent.
In the U.S., futures point to a higher open on Wall Street. In the previous session, stocks showed a substantial move back to the downside amid renewed concerns about the financial situation in Europe. The major averages posted steep losses on the day, offsetting Tuesday's gains. The Dow declined 1.3 percent, the Nasdaq dropped 1.2 percent and the S&P 500 retreated 1.4 percent.
In the commodity space, crude for July delivery is adding $0.16 to $87.98 per barrel and August gold is rising $1.2 to $1566.9 a troy ounce.
by RTT Staff Writer
For comments and feedback: email@example.com