European stocks may open on a cautious note Thursday, though underlying sentiment could remain supported by hopes of a strong economic recovery from the pandemic-triggered recession.

The British pound was flat ahead of today’s BoE interest rate decision. The Bank of England might start to slow its pandemic emergency support, citing a much stronger recovery this year than it previously expected.

The dollar eased off of its more than two-week high hit earlier on Wednesday after three Fed officials argued that U.S. inflation is unlikely to get out of control despite the unprecedented government spending.

Oil traded flat after ending slightly lower on Wednesday as data showed gasoline inventories in the United States rose for a fifth consecutive week.

Asian markets are trading mixed as investors looked forward to Friday’s U.S. monthly jobs report that may provide clues on when the Federal Reserve will dial back monetary stimulus.

Overnight, U.S. stocks ended mixed as investors digested mixed economic data and fretted about inflation.

Shares of major pharmaceutical companies dropped as the Biden administration announced support for waiving intellectual patent protections for coronavirus vaccines.

The Dow rose 0.3 percent to reach a new record closing high and the S&P 500 inched up marginally while the tech-heavy Nasdaq Composite eased 0.4 percent.

European markets advanced on Wednesday as investors weighed robust earnings reports and a brightening economic outlook against inflationary concerns.

The pan European Stoxx 600 climbed 1.8 percent. The German DAX surged 2.1 percent, France’s CAC 40 index rallied 1.4 percent and the U.K.’s FTSE 100 added 1.7 percent.

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