14th Aug 2014 06:22
VIENNA (Alliance News) - European stocks are seen opening largely unchanged on Thursday after clawing back some ground the previous day despite weak eurozone data. The losses, if any, would be limited as weak US retail sales data pointing to some loss of momentum in the world's largest economy fuelled speculation that the Federal Reserve will maintain its easy monetary policy stance for a while. The euro trades in a tight range against the dollar ahead of data on euro zone growth and inflation due out later in the day.
Eurostat is due to release preliminary second quarter GDP estimate and consumer prices data for the eurozone at 5 am ET.
Meanwhile, the Royal Institution of Chartered Surveyors' monthly house price balance eased to a five-month low of 49 in July, down from 52 in June and undershooting forecasts. Buyer inquiries tumbled at the sharpest rate since April 2008 in London, which had been enjoying a boom in prices through recent months.
Across the Atlantic, traders eye reports on weekly jobless claims and import and export prices to gauge the health of the economy.
Asian stocks are trading mostly higher, with the markets in Japan and Australia leading the way on the back of a weaker yen and healthy corporate earnings, while the benchmark indexes in Indonesia, South Korea and Taiwan are slightly subdued. The Bank of Korea today cut its benchmark interest rate by 25 basis points to its lowest level since late 2010, backing government efforts to stimulate the economy.
Geopolitical concerns appear to be easing a bit further at least for now, reducing the appeal of safe-haven assets. The Pentagon has announced its assessment on the situation on Mount Sinjar in northern Iraq, saying that there are far fewer refugees left at the location and they are in better condition than previously believed.
French President Francois Hollande said that his government will provide arms to Iraq's Kurds who are currently struggling to stop fighters of the ISIL, an extremist Sunni militant group now calling itself the Islamic State (IS), from advancing further north.
Israel and Palestinians have agreed to a five-day cease-fire in Gaza during Egyptian-mediated indirect talks in Gaza, media reports claim. The ceasefire agreement came just minutes before an existing three-day truce expired on Wednesday midnight.
In domestic corporate news, German Internet service provider United Internet AG reported a 49.5% increase in first-half earnings before interest and taxes, helped by strong growth in mobile internet and DSL customers.
US drugmaker Merck has won the Food and Drug Administration approval for a new type of pill for adults with insomnia who have difficulty falling asleep and/or staying asleep.
Diversified conglomerate General Electric Co. is mulling the sale of its home appliances business and has drawn interest from Swedish home appliances company Electrolux AB and consumer development startup Quirky, Inc., the Bloomberg reported.
European stocks closed higher on Wednesday, helped by some upbeat corporate earnings and comments by Poland's foreign minister downplaying the risk of Russia invading Ukraine. The Bank of England highlighted a range of risks facing the UK economy, denting expectations of a first interest rate hike this year. The German DAX rallied 1.4%, France's CAC 40 added 0.8% and the UK's FTSE 100 gained 0.4%.
US stocks rose notably overnight despite a weaker-than-expected report on retail sales and some disappointing earnings reports. The Dow rose 0.6%, the tech-heavy Nasdaq gained a percent and the S&P 500 advanced 0.7%.
Copyright RTT News/dpa-AFX