European Markets Seen Opening Firm

(RTTNews) - Markets in Europe are expected to open on a firm note on Thursday amidst strong gains in Asian markets. Weak corporate earnings, recession fears and the impending interest rate decisions by the Federal Reserve, Bank of England and the European Central Bank are however expected to keep sentiment in check.

Mixed sentiment prevailed in Wall Street on Wednesday ahead of key U.S. data releases viz the GDP readings on Thursday as well as the PCE -based inflation readings on Friday. Earnings updates also swayed sentiment and the Nasdaq Composite shed 0.18 percent to close at 11,313.36 whereas the Dow Jones Industrial Average edged up 0.03 percent to finish trading at 33,743.84.

Earnings updates, recession fears as well as anxiety surrounding monetary policy tightening ahead dampened sentiment in Europe as well. Markets in the region closed lower on Wednesday with the pan-European Stoxx-600 shedding 0.29 percent. U.K.'s FTSE 100 dropped 0.16 percent, France's CAC 40 lost 0.09 percent and Germany's DAX declined 0.08 percent. Switzerland's SMI edged 0.01 percent lower.

Current indications from the European stock futures imply a rebound on Thursday. The DAX Futures (Mar) is currently trading 0.33 percent higher. The FTSE 100 Futures (Mar) is currently trading 0.16 percent higher. The CAC 40 Futures (Feb) had closed 0.14 percent higher on Wednesday.

American stock futures are in mild positive territory. The US 30 (DJIA) is up 0.08 percent whereas the US500 (S&P 500) is 0.22 percent higher.

Asian stock markets are trading mixed amidst hopes of boost from China's reopening and fears of continued aggressiveness in monetary policy by central banks worldwide. Hong Kong's Hang Seng has added close to 2 percent after resuming from the Lunar holiday. South Korea's KOSPI has added 1.50 percent. New Zealand's NZX 50 is trading 0.24 percent higher. Japan's Nikkei 225 declined around 0.22 percent. Markets in China, Australia and India are closed for a holiday.

The Dollar Index (DXY), a measure of the Dollar's strength relative to six currencies, is hovering near the 8-month low touched a few days back. DXY is currently at 101.61, down 0.03 percent on an overnight basis. The EUR/USD pair increased 0.04 percent to 1.0919 whereas the GBP/USD pair added 0.02 percent to trade at 1.2403.

Gold Futures for February settlement are trading 0.30 percent higher at $1,948.45 per troy ounce. The previous close was at $1,942.60.

Crude prices firmed up amidst a less-than-expected rise in inventories in the U.S. and anxiety ahead of the upcoming EU embargo on Russian refined products. Brent Crude Futures for March settlement has increased 0.08 percent to $86.19 whereas WTI Crude Futures for March settlement has increased 0.29 percent to $80.38.

The Confederation of British Industry's Distributive Trades Survey is due on Thursday. Retail sales balance is seen at -5 versus 11 in the month of December. The Office for National Statistics in the U.K. would also be releasing the Labour Productivity numbers for the third quarter.

Major earnings updates due from the region include Volvo, Visa, Louis Vuitton, SEB, Essity, Comcast, Christian Dior, SAP and Telia Company.