The major European markets are likely to open flat with a negative bias on Thursday after the U.S. Federal Reserve's status-quo decision on interest rates offered little surprise.
Profit taking after gains in the previous session may further affect investor sentiment, but positive Asian cues may offer some support.
Several statistical data releases are due from European economies, of which industrial new orders data for the euro area is expected to be in focus. Investors also await the U. S. first quarter GDP report and the weekly jobless claims report.
U.S. stocks closed mostly higher on Wednesday, although the major averages turned in a mixed performance. The U.S. Fed announced no change to its rate target and reiterated its commitment to the quantitative easing measures first announced in March. While the central bank noted some improvement in the economy and removed its warning about the possibility of deflation, many economists believe the historically low rates could remain for some time, leaving worries that the massive stimulus efforts could lead to inflation down the road.
A commerce department report which showed a 1.8 percent rise in durable goods orders for May also surprised economists, who had expected a decline of 0.9 percent. While the Dow Jones Industrial Average ended down 0.28%, the Nasdaq Composite index rose 1.55% and the S&P 500 index gained 0.65%.
Crude oil futures closed a choppy session modestly lower on Wednesday, as investors mulled over the Energy Department's weekly inventory report, which showed a drop in crude stocks but a rise in gasoline supplies. Light sweet crude for August delivery dropped to $68.67 per barrel on the New York Mercantile Exchange, down $0.57 on the session. In Asian trading on Thursday, crude oil saw some recovery towards $69 a barrel.
The European markets rose for the first time in three days on Wednesday after a government report showed U.S. durable goods orders unexpectedly increased last month and the Organization for Economic Cooperation and Development boosted economic outlook for its 30 member countries.
The FTSEurofirst 300 index of pan-European blue chips closed 2.39% higher, while the narrower DJ Stoxx 50 index rose 2.23%. Around Europe, the U.K.'s FTSE 100 index rose 1.18%, France's CAC 40 index surged up 2.18% and Germany's DAX index climbed 2.74%.
In corporate news, Spanish builder Acciona SA will complete the sale of a 25 percent stake in Endesa SA to Italy's Enel SpA on Thursday. Paris-based nickel producer Eramet SA increased its stake in Eralloys to 100% after acquiring the 5.7% equity still held by minority shareholders.
Deutsche Lufthansa AG said Wednesday that it would increase its fuel surcharge on domestic and European flights on or after July 2 to match rising crude oil price. Barry Callebaut, which supplies bulk chocolate, aims for a 2-4 percent volume growth this year and earnings before interest and tax (EBIT) growth of 11-14 percent on an average in the mid -term.
China Minsheng Banking Corp. has hired four investment banks, including UBS AG, to run its planned 20 billion yuan or US$2.93 billion Hong Kong initial public offering in the fourth quarter of this year, reports suggest.
Misys plc, the global application software and services company's unaudited reported group revenue from continuing operations for the year ended May increased by around 40% compared with the prior year.
Oil firm BP Plc on Thursday announced the appointment of Carl-Henric Svanberg as its chairman from January 1 2010. Benelux group Fortis Insurance is in advanced talks to close a deal to provide motor and household products forTesco's financial services arm, reports suggest.
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