European Shares Set To Slip Ahead Of ECB Meet
European stocks are seen opening notably lower on Thursday after data showed China’s factory-gate inflation accelerated in August to a 13-year high, driven by roaring raw material prices.
Meanwhile, the consumer price inflation grew just 0.1 percent month-on-month, as consumption was hit by tighter restrictive measures, including travel limits, to curb the latest COVID-19 outbreak.
The focus now turns to the European Central Bank (ECB) meeting later in the day, which is expected to keep discussion over stimulus.
Asian markets fell broadly on growing concerns about the impact of the Delta coronavirus variant. A rally in Chinese tech companies ran out of steam as China strengthened its grip on the gaming industry.
Chinese gaming giants Tencent Holdings and NetEase were called in to meet with Chinese authorities on Wednesday to discuss further oversight.
Treasuries and the dollar held an advance as investors looked ahead to the ECB meeting for hints on tapering plans.
Oil held steady after settling sharply higher on Wednesday on reports about a slow progress in restoration of crude output in the Gulf of Mexico region.
Destatis releases Germany’s foreign trade data for July later in the day. Economists expect exports to grow 0.5 percent month-on-month and imports to rise 0.2 percent.
Across the Atlantic, trading may be impacted by reaction to the weekly jobless claims reports along with comments by several Federal Reserve officials.
Overnight, U.S. stocks ended lower as investors pondered over economic risks including the worldwide spread of the coronavirus and reduction in central bank stimulus.
U.S. businesses are experiencing escalating inflation that is being aggravated by a shortage of goods, the Fed’s Beige Book said.
The Dow dipped 0.2 percent, the tech-heavy Nasdaq Composite shed 0.6 percent and the S&P 500 slipped 0.1 percent.
European stocks fell on Wednesday on worries about the slowing pace of a global economic recovery.
The pan European Stoxx 600 declined 1.1 percent. The German DAX tumbled 1.5 percent, France’s CAC 40 index gave up 0.9 percent and the U.K.’s FTSE 100 dropped 0.8 percent.
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