Renewed fears of a ferocious coronavirus delta variant wave and possible repercussions on the fledgling economic recovery appear to have drained the euphoria from the European bourses as they appear set for a weak opening.
On Wednesday, the last day of the quarter, the major benchmarks had closed in the red with FTSE100 losing 0.71 percent, CAC 40 shedding 0.91 percent, DAX 30 shaving off 0.87 percent, SMI 20 losing 0.71 percent and the pan-European Stoxx 600 correcting by 0.87 percent.
Overnight the Nasdaq 100 closed at 14554.80, down by 0.12 percent whereas the Dow Jones Industrial Average closed at 34502.51, up by 0.61 percent.
Gold is currently trading at $1775.45 per troy ounce, up by 0.22 percent over previous close with the dollar strength limiting further upsides as investors across asset classes speculate the likely response of Fed to the payroll numbers due later in the week.
Brent Crude is trading at $74.74 per barrel, having risen by 0.16 percent from previous closing level, ahead of the crucial OPEC+ meeting to assess the demand-supply dynamics in the context of delta variant concerns, inventory accumulation and relaxations in travel restrictions.
Dollar Index remained at 92.42 at near 12-week highs indicating the dollar’s strength in a tapering-due world economy, duly supported by hawkish tapering postures by Fed officials.
U.S. ten-year bond yields remained at 1.475 percent, close to Wednesday’s closing figure of 1.468 percent indicating caution ahead of the decisive monthly payroll data release on Friday.
American Stock futures are close to 0.25 percent higher than previous close aided by a buoyant earnings season and strong economic indicators.
Most Asian markets are mirroring Wednesday’s sell-off in European markets and have declined over previous day’s levels. Australian ASX 200 is lower by 0.45 percent, Japan’s Nikkei 225 has shed 0.43 percent, Hong Kong’s Hang Seng has corrected by 0.53 percent, South Korea’s Kospi has dipped by 0.39 percent and India’s Sensex is down by 0.10 percent. However, China’s Shanghai Composite is higher by 0.07 percent and New Zealand’s NZX 50 is higher by 0.07 percent.
On Thursday, markets are expecting the Manufacturing PMI numbers for June from Switzerland, France, Germany, U.K. and Euro Area. Other economic indicators awaited from Europe are Unemployment rate for May from Euro Area, Retail Sales for May from Germany and Switzerland and Inflation rates for June from Switzerland. Markets will also look forward to cues and clues in scheduled addresses by ECB President Christine Lagarde and Bank of England Governor Andrew Bailey. Key Indicators for June expected from the U.S. on Thursday are Initial / Average Jobless claims and Manufacturing PMI, whereas the crucial Non-Farm Payrolls data is due for release late on Friday.
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