European Shares Poised For Mixed Open Ahead Of ECB Rate Decision

(RTTNews) - European stocks are seen opening on a mixed note Thursday as investors await interest-rate decisions from the Swiss National Bank and the European Central Bank.

Both are expected to reduce interest rates, with markets weighing the prospects of half-point and a 25-bps cut, respectively.

Late on Wednesday, Brazil's central bank increased the benchmark interest rate by a full percentage point and pledged to deliver two hikes of the same size in the next two meetings in light of more adverse scenario for inflation convergence.

The Bank of Canada made another big cut to its key interest rate Wednesday but warned it may be time to pump the brakes.

The Federal Reserve is widely expected to lower rates by 25 basis points at its Dec. 17-18 meeting, but the rate path beyond December is less certain.

U.S. producer price inflation data for November along with a report on weekly jobless claims due later in the day may provide further insights into the economic and rate outlook.

Asian markets traded mixed as investors await the outcome of a highly anticipated economic policy meeting in Beijing.

There were reports that China's top leaders and policymakers are considering allowing the yuan to weaken next year in response to the threat of a trade war with the U.S. The U.S. dollar held steady after hitting a two-week high in the previous session, supported by a rise in U.S. Treasury yields.

Gold dipped in Asian trade but held above $2,700 per ounce. Oil prices edged up slightly to extend overnight gains on possible sanctions on Russia by the European Union and expectations of increased demand from China.

Traders were also reacting to reports suggesting that the U.S. is considering imposing additional sanctions on Russia's energy sector.

U.S. stocks rose broadly overnight and the dollar hit a two-week high as in-line inflation data reinforced expectations that the Federal Reserve will cut interest rates by another quarter point next week.

Data showed the U.S. consumer price index rose 0.3 percent in November, the largest gain since April after climbing by 0.2 percent for four straight months.

On an annual basis, inflation rose to 2.7 percent last month from a year ago, up slightly from 2.6 percent in October.

Core inflation stayed firm, rising 0.3 percent for the fourth straight month. The annual rate came in at 3.3 percent, in line with forecasts.

The tech-heavy Nasdaq Composite surged 1.8 percent to reach a new record high and close above 20,000 for the first time.

The S&P 500 climbed 0.8 percent to end just shy of a new high while the Dow slipped 0.2 percent.

European stocks also closed higher on Wednesday as U.S. inflation figures matched expectations and Chinese President Xi Jinping said the country will meet its 5 percent GDP growth target.

The pan European STOXX 600 gained 0.3 percent. The German DAX and the U.K.'s FTSE 100 both rose around 0.3 percent while France's CAC 40 added 0.4 percent.