Meanwhile, shares in the old continent opened slightly higher, with the index gaining 0.3%, helped by retail trading.
The European stocks rose on Thursday, oil fell for a fifth consecutive day and the dollar remained subdued after the minutes of the Federal Reserve (Fed) noted that interest rate cuts in USA will begin in a few weeks.
The minutes indicated that the “vast majority” of policymakers believed that if the data came in as expected, a cut in September would likely be appropriate, validating market expectations.
Shares, after a phenomenal rally from lows earlier in the month, plunged after a bout of volatility and sought profits. Meanwhile, European stocks opened slightly higher, with the index gaining 0.3%, helped by retail trading.
Oil on the decline
However, the prices of the oil fell to $75.96 a barrel, Brent crude futures were near their lowest for the year, having lost nearly 6% in August, as demand prospects for China weaken and imminent rate cuts indicate an expectation of a slowdown in USA.
A slew of economic data from major economies will be released later in the day, including consumer confidence data for the eurozone and the US PMI, as well as initial jobless claims figures.
The broadest MSCI index of equities Asia-Pacific Outside Japan, the market was mostly flat. “What we have seen since yesterday is just a confirmation of the broad expectations of Fed rate cuts in September,” said Sandrine Perret, a multi-asset portfolio manager at Unigestion.
Wall Street futures indicators pointed to gains of around 0.7%, while the dollar index, which was unchanged at 101.21, fell to 100.92 overnight for the first time this year.
The euro, which has seen strong gains this month, fell 0.2% to $1.1128 after the PMI data. Germany, weaker than expected. The survey suggests that the German economy, which unexpectedly contracted by 0.1% in the second quarter, has not regained momentum heading into the second half of the year.
Source: Ambito
