European stocks have improved as yields improve
(RTTNews) – European stocks could open higher on Thursday as US Treasuries yields eased after an initial rebound on bullish consumer confidence data, progress on vaccinations and strong political support.
Asian markets advanced after US President Joe Biden gave his first joint speech to Congress, outlining ambitious plans to build America as the country brought the pandemic under control.
Gold gained ground as the dollar held close to nine-week lows after the Fed crushed speculation about an early cut in asset purchases. Oil extended its gains overnight after bullish expectations for demand picking up this summer.
In economic publications, data on consumer prices and unemployment in Germany as well as the results of the Eurozone Economic Confidence Surveys are due later in the session, topping the bill on a busy day for European economic news.
Across the Atlantic, traders will likely keep an eye on the preliminary reading of Q1 GDP as well as reports on weekly jobless claims and pending home sales.
The earnings news is likely to attract attention, with Apple and Facebook driving skyrocketing profits that have essentially doubled from the previous year.
EBay’s earnings outlook for the current quarter missed analysts’ estimates, while Ford lowered its full-year forecast high.
US stocks ended lower overnight as the Fed left interest rates and asset purchases unchanged while pledging to maintain an accommodative policy for a while, despite rising inflation .
Officials stepped up their assessment of the economy, citing progress in immunization and strong political support.
Traders also reacted to the latest earnings news from several large companies, including Alphabet, Visa, Microsoft and Boeing.
The Dow slipped half a percent, the high-tech Nasdaq Composite slipped 0.3 percent, and the S&P 500 fell slightly.
European stocks posted modest gains on Wednesday as investors applauded a batch of strong earnings.
The pan-European Stoxx 600 ended flat with a positive bias. The German DAX and UK FTSE 100 both rose around 0.3%, while the French CAC 40 index added half a percent.
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