European Shares Seen Opening Mixed Before ECB Rate Decision

(RTTNews) - European stocks may open on a mixed note Thursday, with technology stocks seen rising following stronger commentary from Oracle management over the future of its cloud infrastructure business.

A cautious undertone may prevail as investors await high-stakes U.S. inflation data later in the day for additional clues on the outlook for interest rates.

Consensus estimate show that the headline CPI likely rose 2.9 percent from a year earlier, the fastest pace since January, while the core measure likely held at 3.1 percent.

A tame report could fuel bets of 50 bps rate cut from the Federal Reserve when it meets next week.

With job growth getting stalled due to trade policy uncertainty, markets are also pricing in three additional 25 bps consecutive cuts from the U.S. central bank by January 2026.

The European Central Bank announces its interest-rate decision later today, followed later by a press conference with President Christine Lagarde. With inflation under control and U.S. tariff tensions easing, the likelihood of further rate cuts appears low.

Asian markets were mixed after Mexico imposed tariffs up to 50 percent on over 1,400 products from China and other Asian countries, aiming to boost domestic production and offset U.S. trade pressures.

Treasuries held steady in Asian trade after rallying across the curve on Wednesday. The dollar index was little changed while gold edged lower after rising in the previous session.

Oil ticked lower after three consecutive sessions of gains. Media reports quoted an EU diplomat as saying that the European Union is 'very unlikely' to impose crippling tariffs on India and China to squeeze Russia.

U.S. stocks ended mixed overnight while Treasury yields touched their lowest level since April as softer-than-expected U.S. inflation data boosted hopes for Federal Reserve interest rate cuts.

The S&P 500 rose 0.3 percent and the tech-heavy Nasdaq Composite inched up marginally to reach new record closing highs while the Dow declined half a percent.

European stocks ended mostly lower on Wednesday amid heightened geopolitical tensions following Israel's attack on Hamas leadership in Qatar and Russia's intensified military actions near Ukraine, with NATO forces shooting down Russian drones over Poland.

The pan European STOXX 600 finished marginally lower as French President Emmanuel Macron named close ally Sebastien Lecornu as the new Prime Minister.

France's CAC 40 edged up by 0.2 percent while the German DAX dipped 0.4 percent and the U.K.'s FTSE 100 slid 0.2 percent.