European stocks may drift lower at open on Thursday as a slew of data signaled the limits of China’s post-pandemic recovery.

China’s economy grew 7.9 percent from a year earlier during the April-June period, marking the fifth straight quarter of expansion but falling just short of forecasts. The GDP print beat forecasts on a quarterly basis.

Monthly retail sales, industrial output and fixed investment figures all showed slowing growth.

Earlier today, China’s central bank pumped cash into the financial system through open market operations to maintain liquidity in the system.

Asian markets were trading mixed while the dollar retreated from recent peaks after Fed Chair Jerome Powell said a tapering of stimulus is still a long way off.

Gold slipped but hovered near four-week high as bond yields fell globally after Powell’s dovish comments.

Oil extended overnight losses after U.S. gasoline stockpiles unexpectedly expanded last week and reports suggested that oil producers are closing in on an agreement to boost production.

It’s a particularly quiet day on the European economic calendar. Across the Atlantic, trading may be impacted by reaction to the latest batch of economic news, including reports on weekly jobless claims, regional manufacturing activity and industrial production.

Powell is scheduled to testify before the Senate Banking Committee, where he is likely to reiterate his prepared remarks.

U.S. stocks fluctuated before ending narrowly mixed overnight as Powell reiterated that “substantial further progress” towards the Fed’s goals of maximum employment and price stability is “still a ways off” and that there will be “advance notice” before the Fed makes any changes to its asset purchase program.

His comments came as new data showed prices paid to U.S. producers rose in June by more than expected.

European stocks ended broadly lower on Wednesday, with weak Eurozone industrial production data and inflation worries weighing on markets.

The pan European Stoxx 600 ended flat with a negative bias. The German DAX and France’s CAC 40 index both finished marginally lower while the U.K.’s FTSE 100 dropped half a percent.

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