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European Stocks Seen Opening Weak

stockmarkets aug17 13jan22 lt

European bourses are expected to trade slightly weak on Thursday despite the keenly awaited inflation data from the U.S coming in along expected lines requiring no more harsher measures by the Fed. Earnings optimism could however keep the sentiment in check amidst weak sentiment in the Asian markets and the American futures segment.

The CAC Futures (January) is trading 0.80 percent higher. The DAX Futures for March is trading 0.19 percent lower. The FTSE 100 futures for March are trading 0.07 percent lower.

On Wednesday, the Wall Street did not witness further sell-off as the inflation reading though high, came in along expected lines. Nasdaq-100 rallied 0.38 percent on Wednesday to close at 15,905.10, whereas Dow Jones Industrial Average moved up a more modest 0.11 percent to end at 36,290.32.

On Wednesday, most of the European markets had recovered smartly after the release of the inflation numbers in the U.S which came in along expected lines. The pan European Stoxx 600 advanced 0.65 percent. The U.K.'s FTSE 100 gained 0.81 percent, Germany's DAX ended 0.43 percent up and France's CAC 40 climbed 0.75 percent, while Switzerland's SMI shed 0.31 percent.

Dollar Index, which measures the strength of the Dollar against a basket of six currencies is currently at 94.95. The EURUSD pair is currently at 1.1442, while the GBPUSD pair is at 1.3710.

Gold futures for February settlement are trading at $1825.85 per troy ounce, about 0.08 percent lower than the previous close of $1,827.30.

WTI Crude for February settlement is trading at $82.36, down 0.34 percent from the previous close whereas Brent Crude for March settlement is trading at $84.41, down 0.31 percent from the previous close. Lingering concerns over the global oil demand outlook in the backdrop of the coronavirus resurgence continues to drive the black fluid lower.

American futures point to bearish trends with the Nasdaq 100 stock futures currently in mild negative territory with a decline of 0.34 percent and the Dow Jones Futures edging down 0.18 percent.

Asian markets are trading mixed amidst red-hot inflation in the U.S and the Fed's likely monetary policy response to combat it dampening investor sentiment. Japan's Nikkei 225 has shed 0.99 percent, China's Shanghai Composite is down 0.89 percent, and South Korean Kospi has lost around 0.34 percent. Hong Kong's Hang Seng is down 0.07 percent. New Zealand's NZX 50 has edged down 0.03 percent. Australia's S&P ASX 200 has however rallied 0.48 percent. Indian benchmarks are close to the flat-line.

ECB's Economic Bulletin, BOE's Credit Conditions Survey etc. are due for release later in the day.

Luis de Guindos, Vice-President, Pentti Hakkarainen, member of the Supervisory Board and Frank Elderson, member of the Executive Board and Vice-Chair of the Supervisory Board, of the European Central Bank are set to speak which would be keenly watched for indications on the future possible direction of monetary policy.

The Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index is due from U.K. Germany and France.

Earnings updates are expected from Tesco, Marks and Spencer, Big Yellow and Safestore from the U.K. as well as About You Holding and Suedzucker AG from Germany.

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