The European markets are seen opening higher on Thursday as risk aversion subsided globally. Wall Street stocks saw their biggest single-day gain in four years overnight and Asian shares are rising across the board after hints the U.S. Federal Reserve is unlikely to raise interest rates next month due to concerns about slowing global economic growth and the turbulence in financial markets.
Crude oil prices rallied in Asian deals after a mixed inventory report from the U.S. Energy Information Administration and base metal prices firmed up, while gold is little changed after suffering its biggest fall in five weeks overnight.
The dollar retreated and emerging-market currencies steadied, reflecting improved risk appetite. China's central bank today set the midpoint rate (CNY=SAEC) at 6.4085 per dollar, a four-year low and firmer than the previous day's closing market quote of 6.4105.
A sharp rebound on Wall Street helped spur sentiment across Asia, with the benchmark indexes in the region rising 1-3 percent.
In economic releases, German import price data, U.K. house price figures and U.S. reports on second-quarter GDP, weekly jobless claims and pending home sales are slated for release later in the day. French statistical office Insee is set to publish manufacturing confidence survey results at 2.45 am ET, with economists expecting the index to remain unchanged at 102 in August.
The annual Economic Policy Symposium in Jackson Hole, Wyoming, begins later today with investors looking for further assurances from Fed officials that rates won't be hiked next month. Federal Reserve Chair Janet Yellen will not be attending the conference but traders will be following closely what Vice Chairman Stanley Fischer has to say.
Federal Reserve Bank of New York President William Dudley, a close ally of Fed Chair Janet Yellen, told a press briefing on Wednesday that a September rate hike is looking less compelling than a few weeks ago given the downside risks that international developments could pose to U.S. economic growth.
In corporate news, digital security provider Gemalto reported that its adjusted net profit for the first half grew 10 percent to 105.7 million euros from 95.8 million euros in the previous year.
Telecom giant Vodafone Group Plc said that Vodafone Turkey has secured 82.8 MHz of spectrum for enhanced mobile data and voice services in the Information and Communication Technology Authority's auction for 778 million euros.
Pernod Ricard SA, a French producer of spirits and wines, reported that its net profit for the full year slid 14 percent to 880 million euros from 1.027 billion euros last year.
The European markets ended Wednesday's session deep in the red, unable to extend the previous session's rally, as China's latest move to cut interest rates failed to soothe investor worries about stalling growth in the world's second largest economy. The German DAX dropped 1.3 percent, France's CAC 40 index shed 1.4 percent and the U.K.'s FTSE 100 index slid 1.7 percent.
The major U.S. averages climbed about 4 percent each overnight after seeing the longest slide in more than three years over the past six sessions on concerns about the health of the Chinese economy. Sentiment was supported by upbeat durable goods orders data and comments from New York Fed President William Dudley that the Federal Reserve might not raise interest rates next month.
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