European and UK stock markets opened on a calm footing Thursday morning, with investors largely holding back as they await critical data from the US later in the day. After several sessions marked by nervous trading and swings driven by inflation fears and geopolitical tensions, Thursday’s early trade brought a modest dose of stability to the region’s bourses.
In London, the FTSE 100 edged slightly higher at the open, supported by gains in energy and materials stocks as commodity prices remained resilient. However, sentiment remains tentative following reports that fintech group Wise is preparing to shift its primary listing from London to the United States — a development some analysts view as a signal of waning confidence in UK capital markets.
On the continent, the German DAX and France’s CAC 40 also posted minimal gains in early trade, aided by a slight improvement in eurozone services data. Though consumer demand has softened in several sectors, hopes persist that the European Central Bank will cut interest rates in the coming months, especially after data released earlier this week showed eurozone inflation ticking lower in May.
Still, few traders are making bold bets ahead of fresh economic signals from the US. The spotlight later today will be on labour market figures and updates from major tech firms. US futures were modestly higher in the European morning session, hinting at a cautiously optimistic open on Wall Street, though any surprises in economic data could easily shift the tone.
Markets in the US ended mixed on Wednesday, with the S&P 500 flat, the Dow slipping marginally, and the Nasdaq slightly higher. Weakness in services data and a jump in business input costs rattled investors, reinforcing concerns that the Federal Reserve may keep rates elevated for longer despite growing evidence of slowing growth. Analysts are now increasingly split on whether a rate cut could still materialise before year-end.
Tensions with China continue to linger in the background, with fresh US policy discussions around trade and tariffs drawing investor attention. While not yet sparking sharp market reactions, any escalation could quickly shift global risk appetite, particularly in tech-heavy indices.
Later today, attention will turn to weekly jobless claims data in the US, which could provide clues about the resilience of the labour market. In addition, quarterly results from a handful of large-cap tech firms may offer further insights into the sector’s outlook amid signs of saturation and cost-cutting trends.
Overall, Thursday is shaping up to be a transitional day for markets — one that could set the tone for the coming weeks. European stocks have opened quietly but are holding firm, while the US faces a crucial test of sentiment. With investors increasingly wary of overvalued sectors and economic surprises, any sharp movements later today may hinge less on central bank policy and more on fundamental shifts in demand and earnings expectations.
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