European Stocks Seen Opening Weak

(RTTNews) - European stock markets are expected to open weak on Thursday amidst renewed concerns over inflation and the inflation combat by central banks. The higher-than-expected job openings data from the U.S that is perceived to increase the Fed's ability to pursue a hawkish monetary policy is also bound to impact market sentiment in the region. Renewed Covid curbs and the weak economic data from China are also likely to dampen investor sentiment across markets.

On Wednesday, European markets had traded mostly lower, amidst concerns over inflation and rate hikes. U.K.'s FTSE 100 had dropped 0.88 percent whereas the pan-European Stoxx 600 declined 0.67percent. France's CAC 40 had declined 0.19 percent while Switzerland's SMI had moved down 0.11 percent. Germany's DAX however had added 0.53 percent.

The Wall Street had closed with losses on Wednesday amidst strong job openings data that reinforced the likelihood of a more hawkish Fed. Job openings in the U.S. increased to 11.2 million in July, versus 11.04 million in the previous month amidst market expectations of a drop to 10.45 million. Nasdaq-100 lost 1.13 percent to close at 12,342.70 and the Dow Jones Industrial Average lost 0.96 percent to end at 31,790.87.

The FTSE 100 Futures (Sep) is trading 0.22 percent higher. The DAX Futures (Sep) is trading 0.65 percent higher. The CAC 40 Futures is trading 0.38 percent higher. U.S. Dollar Index, which measures the strength of the Dollar against a basket of six currencies retreated and is currently at 108.56. The EUR/USD pair has strengthened 0.28 percent overnight to 1.0040, while the GBP/USD pair has gained 0.25 percent to 1.1684.

Gold Futures for December settlement edged down 0.01 percent to trade at $1,736.20 per troy ounce, versus $1,736.3 on Wednesday.

WTI Crude Futures for October settlement is trading at $92.50, an overnight gain of 0.94 percent whereas Brent Crude Futures for November settlement is trading at $98.79, up 0.97 percent from the previous close.

American stock futures point to positive trends, with the US 30 (DJIA) index up 0.54 percent and US500 (S&P 500) up 0.67 percent.

Asian markets are trading mostly lower in the backdrop of losses in Wall Street on Wednesday. Weak economic data and reintroduction of Covid curbs dragged down China's Shanghai Composite by more than 1 percent. Japan's Nikkei 225 is trading 0.42 percent lower; Hong Kong's Hang Seng has shed 0.29 percent; and Australia's S&P ASX 200 is trading 0.19 percent lower. While South Korean Kospi has added 0.40 percent, New Zealand's NZX 50 has gained 0.07 percent. Indian markets are closed for a holiday.

In economic data releases, preliminary inflation readings for the month of August are due from France and the Euro Area. France's annual inflation is seen stable at 6.1 percent whereas inflation in the Euro Area is seen rising to 9 percent, from 8.9 percent earlier.

Second quarter GDP numbers are also expected from France. Germany is awaiting the unemployment number for the month of August.

Major earnings updates due Thursday from the region are of Pernod Ricard (PERP) from France and Imperial Brands (IMB), United Utilities (UU), Auto Trader Group (AUTOA), B&M European Value (BMEB) and Johnson Mathey (JMAT) from the U.K.