European Shares Seen Opening Up Ahead Of US CPI Data

European stocks may open on a firm note Thursday as investors await U.S. consumer price inflation data later in the day for important clues on the Federal Reserve’s rate trajectory.

Federal Reserve Bank of New York President John Williams said Wednesday that there’s more work left to bring inflation back to the 2 percent target on a sustainable basis.

The weekly jobless claims report due later in the day and U.S. producer price inflation data due on Thursday may also provide fresh insights into the U.S. economic outlook.

Asian markets traded mostly higher, with Japan’ Nikkei extending its record-breaking rally on bets that the Bank of Japan will delay a pivot away from its ultra-dovish policy.

Earlier today, the Bank of Korea modified its hawkish policy stance, but signaled that rates will likely remain higher for longer.

Australia’s inflation slowed to a near two-year low, reinforcing market expectations that interest rates would not need to rise further.

Gold benefited from a weaker dollar and falling bond yields, while oil prices rose on signs of an escalating conflict in the Middle East after another Israeli strike in Rafah.

Bitcoin surged after U.S. regulators approved exchange-traded funds linked to the cryptocurrency.

U.S. stocks and bond yields inched up overnight ahead of key inflation readings and bank earnings.

The tech-heavy Nasdaq Composite climbed 0.8 percent to close higher for the fourth straight session while the Dow rose half a percent and the S&P 500 added 0.6 percent.

European stocks fell for a second consecutive session on Wednesday after ECB policymakers said prospects for the euro area economy in the near term remain weak.

The pan European STOXX 600 eased 0.2 percent. The German DAX and France’s CAC 40 both ended flat while the U.K.’s FTSE 100 slipped 0.4 percent.

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