European Shares Seen Higher On Russia-Ukraine Peace Hopes

(RTTNews) - European stocks are likely to open higher on Thursday after U.S. President Donald Trump and Russian President Vladimir Putin have agreed to start talks to end the Ukraine War in a significant step towards resolving the conflict.

After a phone call between them, both leaders expressed hope for a peaceful resolution.

Meanwhile, Trump could sign his reciprocal tariff plan that will match other countries' higher import taxes sometime later today. The new U.S. tariff rates would take effect "almost immediately".

Asian markets were broadly higher as a heavy selloff in U.S. government bonds paused. The yen was on the back foot while the euro was buoyed by Ukraine peace talks.

Gold traded near record highs above $2,900 per ounce while oil prices fell nearly 1 percent amid expectations that a potential Ukraine peace deal could end sanctions affecting supply flows.

Trading later in the day may be impacted by reaction to the latest U.S. economic data, including reports on weekly jobless claims and producer price inflation.

The European economic calendar remains light, with final inflation figures from Germany and U.K. GDP data likely to garner some attention.

U.S. stocks ended mixed overnight, the dollar advanced and bond yields soared after data showed consumer prices increased in January by the most in nearly a year and a half, adding to worries that the Fed would not rush to resume cutting rates.

The annual rate of consumer price growth accelerated to 3.0 percent in January from 2.9 percent in December, while economists had expected the pace of growth to remain unchanged.

The month-on-month rise for the month was also ahead of expectations, while core inflation touched a 10-month high.

Meanwhile, speaking before the House Financial Services Committee on the second day of his semi-annual congressional testimony, Fed Chair Powell reassured lawmakers that the Fed remains committed to making independent decisions based on economic conditions.

The tech-heavy Nasdaq Composite finished marginally higher after tumbling by 1.2 percent earlier. The Dow and the S&P 500 dipped half a percent and 0.3 percent, respectively.

European stocks shrugged of U.S. tariff threats and inflation concerns to close at a record high on Wednesday.

The pan-European STOXX 600 edged up 0.1 percent. The German DAX gained half a percent, France's CAC 40 inched up 0.2 percent and the U.K.'s FTSE 100 added 0.3 percent.