European markets trade, stocks, data in focus, global sentiment stalls

LONDON — European stocks cautiously advanced on Thursday as global investors digested comments from U.S. Federal Reserve officials and looked ahead to various data releases.

The pan-European Stoxx 600 climbed 0.4% in early trade, with financial services and tech stocks adding 0.7% to lead gains while telecoms bucked the upward trend to slip 0.4%.

European markets look set to rebound from Thursday’s dip amid a choppy week, which has seen global stocks whipsaw as investors monitor the outlook for inflation and central bank policy.

U.S. stock futures also rose in early premarket trading after the market’s comeback rally hit a speedbump on Wednesday, but shares in Asia-Pacific struggled for direction in Thursday trade.

Despite Wednesday’s pause for breath, the three major U.S. indexes are up more than 1% this week, rallying from a sell-off last week after the Federal Reserve heightened inflation expectations and forecast rate hikes as soon as 2023.

Comments from Fed Chair Jerome Powell during a Congressional testimony Tuesday reiterated that inflation pressures should be temporary, which seemed to soothe market sentiment.

Investors await new U.S. jobless claims data set to be released Thursday for the latest outlook on unemployment. In addition, the Fed’s annual bank stress test results are scheduled for release after the bell on Thursday. The test examines how banks could fare during various hypothetical economic downturns.

In the U.K., investors will be watching the Bank of England announce its latest interest rate decision on Thursday. The Bank is expected to hold interest rates at record lows and maintain its massive asset purchase program on Thursday, but investors will be looking out for hints at tightening next year.

Siemens holds its Capital Markets Day on Thursday, while Germany’s Ifo Institute releases its latest economic survey for June.

In terms of individual share price movement, Switzerland’s Tecan surged more than 12% after announcing the $1 billion acquisition of Paramit Corporation.

At the bottom of the European blue chip index, Britain’s United Utilities fell 3.8%.

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– CNBC’s Hannah Miao contributed reporting to this story.

Read More: European markets trade, stocks, data in focus, global sentiment stalls

2021-06-24 05:07:25

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