European Shares Seen Up On Retreating US Yields
European stocks may open higher on Thursday as investors cheer a retreat in global bond yields and upbeat earnings from artificial intelligence (AI) chip maker Nvidia.
Nidia shares jumped 9 percent post the U.S. closing bell after the world’s most valuable chipmaker beat estimates for its fiscal second quarter and issued optimistic guidance for the current period.
In economic releases, France’s statistical office INSEE releases monthly business confidence survey data later in the day. The business sentiment index is forecast to fall to 99 in August from 100 in July.
Across the Atlantic, reports on durable goods orders and initial jobless claims may attract attention in the New York session.
Asian markets followed Wall Street higher, and gold held near two-week highs while the dollar weakened ahead of the Jackson Hole Economic Symposium.
Federal Reserve Chair Jerome Powell will speak at the summit on Friday morning amid so much uncertainty over the U.S. economic outlook.
Central bankers from the European Central Bank, the Bank of England and the Bank of Japan are also expected to speak at the conference.
Oil traded flat after settling lower overnight on fuel demand concerns.
U.S. stocks rose sharply overnight, with technology stocks leading the surge as the ten-year yield pulled back further off highest levels in well over fifteen years.
Economic reports painted a mixed picture of the world’s largest economy, with activity in both the U.S. manufacturing and service sectors contracting more than expected in August while new home sales reached a 17-month high in July.
The tech-heavy Nasdaq Composite rallied 1.6 percent, the S&P 500 climbed 1.1 percent and the Dow rose half a percent.
European stocks closed broadly higher on Wednesday despite underwhelming PMI data from the region.
The pan European STOXX 600 gained 0.4 percent. The German DAX edged up 0.2 percent, France’s CAC 40 finished marginally higher and the U.K.’s FTSE 100 added 0.7 percent.
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