European stock markets are expected to open weak on Thursday amidst renewed fears over inflation and rate hikes. The surge in bond yields and anxieties over corporate earnings and economic recession could dampen sentiment in Thursday’s trade.
On Wednesday, fresh inflation data dragged down European indexes, led by Switzerland’s SMI which plunged 0.89 percent. The pan-European Stoxx 600 lost 0.53 percent whereas France’s CAC 40 erased 0.43 percent. Germany’s DAX lost 0.19 percent. U.K.’s FTSE 100 however managed to limit losses at 0.17 percent.
The Wall Street had also closed with losses on Wednesday amidst worries over inflation and corporate earnings guidance. Nasdaq Composite shed 0.90 percent to close at 10,680.51 whereas the Dow Jones Industrial Average lost 0.33 percent to finish trading at 30,423.81.
The FTSE 100 Futures (Dec) is trading 0.01 percent higher. The DAX Futures (Dec) is trading 0.11 percent lower. The CAC 40 Futures (Nov) had closed 0.31 percent lower on Wednesday.
U.S. Dollar Index, which measures the strength of the Dollar against a basket of six currencies weakened mildly and is currently at 112.83. The EUR/USD pair strengthened 0.13 percent to 0.9784, while the GBP/USD pair gained 0.10 percent to 1.1225.
Gold Futures for December settlement gained 0.3 percent to trade at $1,638.45 per troy ounce, versus $1,634.2 on Wednesday, amidst a modest retreat in the Dollar.
WTI Crude Futures for December settlement is trading at $85.67, an uptick of 1.36 percent whereas Brent Crude Futures for December settlement is trading at $93.18, up 0.83 percent from the previous close. The price surge comes amidst an unexpected decline in the crude oil inventories in the U.S.
American stock futures point to mildly positive trends, with the US 30 (DJIA) index up 0.3 percent and US500 (S&P 500) up 0.04 percent.
Asian markets are trading mostly lower, amidst fresh fears of the Fed’s hawkish actions and worsening economic trends in China. Losses at Hong Kong’s Hang Seng are as high as 2.2 percent. South Korea’s KOSPI has declined 1.3 percent, whereas Japan’s Nikkei 225 and Australia’s S&P ASX 200 are both trading 1.2 percent lower. New Zealand’s NZX 50 has lost 0.8 percent. China’s Shanghai Composite is trading 0.4 percent lower amidst the PBOC’s status quo on rates. India’s Nifty 50 has edged down 0.2 percent.
Germany awaits the producer prices data for the month of September, and it is seen increasing 1.3 percent, versus the 7.9 percent increase in the previous month. Trade surplus data from Switzerland is also expected before market open. Readings of Business Confidence for October from France, which is seen at 101 versus 102 in the previous month, is also due for release on Thursday.
Major earnings updates due are from L’Oreal (OREP), Hermes International (HRMS), Kering (PRTP), Pernod Ricard (PERP), Edenred (EDEN), Getlink (GETP) and Gecina (GFCP).
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