European Shares Seen Up On Fed Rate Cut Bets

(RTTNews) - European stocks may open on a positive note Thursday as traders ramped up forecasts on how much the Federal Reserve will cut interest rates this year.

Amid signs of moderating U.S. inflation, investors eye reports on U.S. weekly jobless claims, retail sales and industrial production later in the day for more insights about the health of the world's largest economy.

Retail giant Walmart will release its quarterly results before the U.S. opening bell, with investors seeking clarity on consumer spending.

Asian stocks traded higher, with Chinese markets leading regional gains on expectations of more stimulus following disappointing economic data.

China's yuan weakened against the dollar as key indicators on China's economic activity missed expectations.

China's retail sales rebounded in July while industrial production growth slowed and new home prices fell at the fastest pace in nine years, highlighting an uneven recovery in the world's second-largest economy.

The European economic calendar remains light, with U.K. GDP data awaited later in the day.

The British economy is expected to grow 0.6 percent sequentially in the second quarter after rising 0.7 percent in the prior quarter.

Gold ticked higher following two days of declines as the dollar sagged due to falling U.S. Treasury yields. Oil edged up slightly after two days of declines.

U.S. stocks ended a lackluster session mostly higher overnight as data showed consumer prices rose 2.9 percent year-over-year in July, down from 3 percent in June and the lowest reading since March 2021 - adding to bets of an interest rate cut at the Fed's September meeting.

The annual rate of core consumer price growth also slipped to 3.2 percent from 3.3 percent in June, matching expectations.

The tech-heavy Nasdaq Composite finished marginally higher, and the S&P 500 rose 0.4 percent to close higher for the fifth consecutive session while the Dow inched up 0.6 percent.

European stocks gained for a second day running on Wednesday after the release of soft U.S. and U.K. inflation prints.

The pan European STOXX 600 gained half a percent. The German DAX rose 0.4 percent, France's CAC 40 climbed 0.8 percent and the U.K.'s FTSE 100 added 0.6 percent.