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European Stock Futures Rise on Weaker U.S. Yields

European stock futures

European stock markets are poised for a higher opening on Thursday, buoyed by a strong finish on Wall Street as U.S. bond yields retreat. This comes in the wake of disappointing job data in the United States.

Futures Show Gains

As of 02:00 ET (06:00 GMT), Germany’s DAX futures contract is up by 0.1%, while France’s CAC 40 futures have gained 0.4%, and the U.K.’s FTSE 100 futures are up 0.2%.

Positive Momentum from Wall Street

On Wednesday, major U.S. equity indexes, led by the tech-heavy Nasdaq Composite, recorded substantial gains. This surge followed a report of weaker-than-expected private payrolls data for September, which caused U.S. Treasury yields to ease from their recent 16-year highs. The diminishing concerns regarding rising interest rates and the Federal Reserve’s stance on rates are boosting Asian markets and are expected to positively impact European markets.

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Caution Ahead of U.S. Jobs Report

Market participants are exercising caution as they await the crucial U.S. official jobs report for September, scheduled for Friday. Meanwhile, the European economic outlook remains gloomy, with Eurozone retail sales plunging 1.2% in August, signaling weakened consumer demand amidst high inflation. The recent composite Purchasing Managers’ Index suggests a likely contraction in the eurozone economy, increasing the chances of a recession in the second half of the year.

Key Economic Data Today On European Stock Futures

Today, investors will be closely watching economic data, including German trade numbers for August and French and Spanish industrial output for the same month.

Oil Prices Attempt Recovery

Oil prices are showing signs of recovery after substantial losses in the previous session. However, uncertainties loom over demand due to a significant buildup in U.S. gasoline inventories. The previous day witnessed crude oil settling over $5 lower, marking the sharpest one-day loss in over a year. This decline is attributed to a substantial increase in U.S. gasoline stockpiles, indicating reduced demand as the summer driving season winds down.

OPEC+ Production Cuts Continue

The Organization of Petroleum Exporting Countries and its allies (OPEC+) reaffirmed their commitment to production cuts. Saudi Arabia and Russia will maintain output reductions of at least 1.3 million barrels per day until year-end.

Current Market Figures

At 02:00 ET, U.S. crude futures are up 0.5% at $84.60 per barrel, while the Brent contract has risen by 0.5% to reach $86.26. Additionally, gold futures have increased by 0.2% to $1,839.15 per ounce, and the EUR/USD pair is trading 0.1% higher at 1.0514.

Stay updated with the latest market trends and developments as European stock futures ride the wave of falling U.S. yields.

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Disclaimer: Please note that this article serves solely for informational purposes. Thus, must not construe as financial advice. We advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.


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