European stock markets are anticipated to open slightly lower on Thursday, following a significant surge in the prior trading session. However, the FTSE 100, a commodities-focused index, might see an upward trend due to the continuing rise in oil prices driven by escalating global supply risks and reports of a substantial reduction in U.S. crude reserves.
As the trading day progresses, investors' attention may shift to U.S. economic announcements, including the weekly jobless claims, retail sales figures, and quarterly earnings releases from Bank of America, Morgan Stanley, and UnitedHealth, expected prior to the market opening.
In Asia, stock markets mirrored Wall Street's upward trajectory, fueled by optimism regarding potential Federal Reserve interest rate reductions this year and anticipated economic stimulus measures from Beijing in the upcoming weeks.
The U.S. dollar has weakened amid assurances from several Federal Reserve officials that the country's inflationary pressures are likely to diminish. Meanwhile, gold maintained its stability near $2,700 per ounce, with oil prices continuing their upward momentum, having increased by more than 2% on Wednesday.
Overnight, U.S. equities experienced a rally, with the dollar declining and bond yields decreasing. This was largely driven by a favorable inflation report and strong earnings from prominent financial institutions like JPMorgan Chase, BlackRock, Goldman Sachs, and Citigroup.
Economic data revealed that the consumer price index (CPI) met expectations, with an annual increase of 2.9% in December, up from 2.7% in November. However, the core consumer price growth rate unexpectedly slowed to 3.2% from 3.3%, bolstering expectations of possible further rate cuts by the Federal Reserve.
The technology-centric Nasdaq Composite Index soared by 2.5%, the Dow Jones Industrial Average climbed 1.7%, and the S&P 500 advanced 1.8%—marking their largest daily percentage increases in over two months.
In Europe, stock markets experienced a robust uptick on Wednesday, fueled by positive consumer price inflation data from both the U.K. and the U.S. The pan-European STOXX 600 rose by 1.3%, breaking a three-day losing streak and achieving its best performance since August 2024. The German DAX soared by 1.5%, France’s CAC 40 increased by 0.7%, and the U.K.’s FTSE 100 gained 1.2%.
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