European Shares Set For Steady Open
(RTTNews) – European stocks are likely to open higher on Thursday, even as a cautious undertone may prevail amid concerns over the debt crisis at China Evergrande Group and Beijing’s latest push to rein in private industries.
As investors bet on an economic recovery from the coronavirus pandemic, the United Nations has warned about deepening inequities between advanced and developing nations.
The progress of U.S. President Joe Biden‘s economic agenda also remains in focus after the House of Representative’s Ways and Means Committee approved the biggest tax hikes in a generation on Wednesday.
The committee approved $2.1 trillion in new levies that mostly focused on corporations and the wealthy.
Asian markets were broadly lower after Japan and China released weaker than expected data.
Hong Kong stocks dropped for a fourth day, sending the benchmark gauge to a 10-month low, as investors watch tighter regulations for Macau’s casino operators and the developments in cash-strapped developer China Evergrande Group.
The dollar inched lower as investors awaited another batch of U.S. economic data, including reports on retail sales and weekly jobless claims for further clues on when the Federal Reserve will begin asset tapering.
Closer home, ECB President Christine Lagarde is scheduled to deliver a speech later in the day.
In the commodities space, Brent crude futures hit $75 for the first time since Aug. 2 after a larger-than-expected drawdown in crude oil stocks in the United States.
Overnight, U.S. stocks ended firmly in positive territory as oil clung to gains and data showed industrial production in the country reached pre-pandemic levels in August, despite persistent supply constraints and shutdowns related to hurricane Ida.
The Dow rose 0.7 percent, the tech-heavy Nasdaq Composite rallied 0.8 percent and the S&P 500 climbed 0.9 percent.
European stocks fell notably on Wednesday as investors reacted to economic data out of the UK. and China.
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