European Markets Seen Opening On A Positive Note

(RTTNews) - European markets are expected to open on an optimistic note on Thursday ahead of the European Central Bank's interest rate decision. The rate cut by Bank of Canada, as well as the lower-than-expected private payrolls data from the U.S. supported sentiment. Anxiety concerning the crucial non-farm payrolls data from the U.S. Bureau of Labor Statistics on Friday however lingered.

The ECB in its meeting on Thursday is widely expected to reduce the Deposit Facility Rate from 4 percent to 3.75 percent, Interest Rate on the main refinancing operations from 4.5 percent to 4.25 percent and the Marginal lending rate from 4.75 percent to 4.5 percent. Though the 25-basis points rate cut is factored in by the markets, considerable uncertainty remains on the rate cuts beyond June.

Wall Street had closed on a positive note on Wednesday, helped by gains in the technology space triggered by a tech rally in AI-darling Nvidia. Nasdaq Composite surged 1.95 percent to close at 17,186.38 whereas the Dow Jones Industrial Average added 0.25 percent to finish trading at 38,807.33.

Upbeat sentiment prevailed in the European bourses on Wednesday ahead of the widely anticipated ECB decision. The pan-European Stoxx-50 rallied 1.7 percent followed by Switzerland's SMI that gained 1.2 percent. Germany's DAX and France's CAC 40 both added 0.9 percent. U.K.'s FTSE 100 edged up 0.2 percent.

Current indications from the European stock futures indicate a broadly positive sentiment. The CAC 40 Futures (Jun) has gained 0.33 percent. The FTSE 100 Futures (Jun) has added 0.24 percent. The pan-European Stoxx 50 Futures (Jun) has rallied 0.50 percent. The SMI Futures (Jun) is flat. The DAX Futures (Jun) is however trading 0.02 percent lower.

American stock futures are trading directionless. The US 30 (DJIA) is trading 0.04 percent lower, whereas the US500 (S&P 500) is trading 0.04 percent above the flatline. Asian stock markets are trading on a positive note. India's Nifty 50 is trading 1.1 percent higher. Japan's Nikkei 225 has added 0.81 percent whereas Australia's S&P ASX 200 has rallied 0.77 percent. Hong Kong's Hang Seng has increased 0.65 percent. China's Shanghai Composite has edged up 0.15 percent.DJ New Zealand has also added 0.09 percent. Markets in South Korea are closed for a holiday.

The Dollar Index (DXY), a measure of the U.S. dollar's strength relative to six currencies, has slipped 0.12 percent to 104.15, from the previous close of 104.27. The EUR/USD pair has rallied 0.18 percent to 1.0888 whereas the GBP/USD pair has gained 0.08 percent to trade at 1.2795.

Gold extended gains amidst the dollar's weakness triggered by growing rate cut expectations. Gold Futures for August settlement is trading at $2,389.45, which is 0.59 percent higher than the previous close of $2,375.50.

Rate cut expectations lifted crude oil prices. Brent Crude Futures for August settlement added 0.50 percent to $78.80 whereas WTI Crude Futures for July settlement added 0.65 percent to $74.55. Demand concerns however limited gains.

Major data releases scheduled from the region on Thursday include Unemployment data for May from Switzerland, Factory Orders data for April from Germany, S&P Global Construction PMI for May from U.K. and Retail Sales for April from Euro Area.

Earnings updates due from the region on Thursday include Remy Cointreau, Babcock International as well as Mitie.