European Markets Seen Cheering The Fall In Inflation

Major stock markets in Europe are seen opening on a strong note on Thursday as easing inflation in Germany and Spain as well as dovish comments from Fed officials boosted market sentiment. Headline annual inflation for November from the Euro Area due on Thursday is also expected to show a decline to 2.7 percent, from 2.9 percent in the previous month. Markets also expect the PCE-based inflation readings from the U.S., seen as the Fed’s preferred inflation gauge due on Thursday to reveal lower price pressures.

The more-than-expected GDP readings from the U.S. and an unexpected decline in China’s manufacturing PMI is however seen limiting gains.

Wall Street had closed on a mixed note on Wednesday amidst dovish comments from Fed officials that boosted rate cut hopes and GDP readings that surpassed the previous estimate. Anxiety ahead of the release of the PCE readings also weighed on sentiment. Nasdaq Composite slipped 0.16 percent to close at 14,258.49 whereas the Dow Jones Industrial Average edged up 0.04 percent to finish trading at 35,430.42.

Mostly positive sentiment prevailed in the European bourses on Wednesday amidst a notable easing in inflation in Germany as well as Spain. Markets also cheered the not-so-hawkish comments from Fed officials. Germany’s DAX topped with gains of 1.1 percent. The pan-European Stoxx-50 rallied 0.52 percent. Switzerland’s SMI also added 0.39 percent. France’s CAC 40 gained 0.24 percent. U.K.’s FTSE 100 however declined 0.43 percent as it grappled with hawkish comments from the Bank of England.

Current indications from the European stock futures indicate a positive sentiment. The CAC 40 Futures (Dec) is trading 0.29 percent higher. The pan-European Stoxx 50 Futures (Dec) has gained 0.25 percent. The DAX Futures (Dec) is currently trading 0.22 percent higher. The FTSE 100 Futures (Dec) is trading 0.26 percent higher. The SMI Futures (Dec) is however trading 0.25 percent below the flatline.

American stock futures indicate mild gains. The US 30 (DJIA) is trading 0.36 percent higher, whereas the US500 (S&P 500) is trading 0.12 percent higher.

Asian stock markets are trading on a mixed note amidst weaker-than-expected Chinese business activity data and Fed comments that rekindled hopes of a faster Fed pivot. DJ New Zealand has gained more than 1 percent. Australia’s S&P ASX 200 has rallied 0.74 percent. Japan’s Nikkei 25 has added 0.30 percent. South Korea’s KOSPI has gained 0.12 percent. Hong Kong’s Hang Seng has edged up 0.06 percent. China’s Shanghai Composite has edged down 0.06 percent. India’s Nifty 50 slipped 0.14 percent.

The Dollar Index (DXY), a measure of the U.S. dollar’s strength relative to six currencies, edged up 0.03 percent to 102.80, from the previous close of 102.76. The EUR/USD pair has gained 0.01 percent to 1.0969 whereas the GBP/USD pair has rallied 0.02 percent to trade at 1.2696.

Gold futures prices are 0.15 percent below the flatline after a rising streak. Gold Futures for December settlement is trading at $2,044.10 per troy ounce, versus the previous close of $2,047.10.

Amidst anxiety ahead of the OPEC+ meeting, crude oil prices are trading on a positive note. Brent Crude Futures for February settlement gained 0.34 percent to $83.16 whereas WTI Crude Futures for January settlement gained 0.40 percent to $78.17.

Preliminary Inflation readings for November are expected from France. Retail Sales data for October is due from Germany as well as Switzerland. Final GDP readings for the third quarter from France, KOF Leading Indicators for November from Switzerland, Unemployment Report for November from Germany and Unemployment rate for October from Euro Area are the other scheduled data releases on Thursday. ECB’s Christine Lagarde’s speech at the ECB Forum on Banking Supervision is another major highlight for Thursday.

Major earnings updates due on Thursday from the region include Elekta, Tatneft, Bollore, SGS as well as NN Group.

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