European Markets Seen Opening Firm Amidst Rising Hopes Of Fed's Pause

(RTTNews) - Markets in Europe are expected to open on a positive note on Friday amidst renewed hopes of a pause by the Federal Reserve in the review next week, following the surge in the initial jobless claims. The rise in jobless claims which implied a weakening labor market, is seen reducing the headroom available to the Fed to hike rates further aggressively.

Data released on Thursday showed the number of Americans filing for unemployment benefits jumping to 261 thousand in the week ended June 3 versus the previous reading of 233 thousand and expectations of 235 thousand.

Wall Street had closed on a positive note on Thursday amidst a sharp fall in bond yields that followed the latest job market update. The Nasdaq Composite added 1.02 percent to close at 13,238.52 whereas the Dow Jones Industrial Average added 0.50 percent to finish trading at 33,833.61.

Sentiment however remained weak at the European bourses and major markets in the region closed on a mixed note on Thursday. France's CAC 40 added 0.27 percent. Germany's DAX added 0.18 percent. The pan-European Stoxx-600 slipped 0.02 percent. U.K.'s FTSE 100 finished 0.32 percent lower. Switzerland's SMI finished 0.35 percent lower.

Current indications from the European stock futures indicate a positive sentiment. The FTSE 100 Futures (Jun) is trading 0.19 percent higher. The DAX Futures (Jun) is currently trading 0.07 percent higher. The CAC 40 Futures (Jun) had finished Thursday's trading 0.49 percent higher. The pan-European Stoxx 50 Futures (Jun) traded 0.16 percent higher. The SMI Futures (Jun) dropped 0.29 percent.

American stock futures are trading in mildly negative territory. The US 30 (DJIA) is down 0.16 percent whereas the US500 (S&P 500) is trading 0.11 percent lower.

Asian stock markets are trading on a mixed note. Japan's Nikkei 225 is trading 1.73 percent higher. South Korea's KOSPI has added 1.12 percent. Australia's S&P ASX 200 gained 0.37 percent. Hong Kong's Hang Seng has rallied 0.26 percent whereas China's Shanghai Composite has added 0.09 percent. New Zealand's NZX 50 has shed 0.29 percent. India's Nifty 50 has slipped 0.04 percent.

The Dollar Index (DXY), a measure of the Dollar's strength relative to six currencies, remained firm, rising 0.07 percent to 103.42 amidst disappointing data from China and fears of Fed's likely interest rate decision next week. The EUR/USD pair has edged lower 0.05 percent to 1.0779 whereas the GBP/USD pair has slipped 0.09 percent to trade at 1.2549.

Amidst the Dollar's strength, gold prices weakened. Gold Futures for August settlement are trading at $1,978.35 per troy ounce, down 0.01 percent on an overnight basis.

Crude prices slumped amidst weak inflation data from China and reports of likely revival of U.S.-Iran nuclear deal. Brent Crude Futures for August settlement decreased 0.65 percent to $75.47 whereas WTI Crude Futures for July settlement decreased 0.66 percent to $70.82.

No major data releases are scheduled from the region. Markets would be looking forward to speeches by ECB officials for monetary policy cues.

Some of the earnings updates due on Friday from the region include Tatneft, LXi REIT and Dr Martens.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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