By Upbeat Start Expected for European Markets
European stock indices are forecasted to open higher on Thursday, with Germany’s DAX up 24 points, France’s CAC gaining 25 points, and Italy’s FTSE MIB climbing 72 points. The U.K.’s FTSE 100 is set to dip slightly, opening 2 points lower.
Anticipated ECB Rate Cut to Support Markets
The European Central Bank is likely to announce a 25-basis-point rate cut, bringing its key rate to 2.75%. This decision aligns with the ECB’s ongoing efforts to stimulate the economy amid weak manufacturing activity, subdued services growth, and low consumer confidence across the eurozone.
Economic Data in Focus
Market participants await crucial growth data from major eurozone economies, as well as consumer sentiment, unemployment rates, and economic sentiment reports. These indicators are expected to shed light on the broader economic health of the region.
Earnings Reports Drive Market Sentiment
Corporate earnings dominate the agenda, with results due from major players, including Shell, Deutsche Bank, Nokia, Roche, H&M, and ABB. Investors will closely scrutinize these results for insights into corporate performance amid challenging economic conditions.
Global Market Movements
In Asia, Australian and Japanese stocks extended gains, while markets in China, South Korea, and Hong Kong remained closed for Lunar New Year celebrations. In the U.S., futures edged higher following tech earnings reports and the Federal Reserve’s steady rate policy announcement.