European Shares To Open On Firm Note Ahead Of Key Data

European shares are likely to open higher on Wednesday as soft U.S. data released overnight spurred hopes that the Federal Reserve is done with its monetary tightening.

The day’s economic calendar remains heavy, with German and Spanish inflation data for August, euro zone August consumer confidence survey results and the release of U.S. ADP private payrolls report likely to influence trading sentiment later in the day.

The U.S. personal consumption expenditures price index due on Thursday and nonfarm payrolls data on Friday will provide a much clearer picture on inflation and interest rates.

The euro zone inflation report due on Thursday could be key to whether the European Central Bank hikes rates at its September meeting.

Focus also remains on PMI data from China, due on Thursday that will highlight the state of the economy.

Media reports suggest that China’s largest banks are working on reducing interest rates on existing mortgages and deposits as part of a targeted push by Beijing to boost growth in the world’s second-largest economy.

Earlier today, Guangzhou became the first major Chinese city to announce an easing of mortgage curbs to help revive the crisis-hit property sector.

Asian markets were broadly higher this morning and the dollar was little changed while gold prices hovered near three-week highs.

Oil extended overnight gains amid hurricane jitters and on industry data showing a large U.S. stockpile draw.

Overnight, U.S. stocks rose sharply and Treasury yields eased, as data showing a dip in job openings for the third straight month and deteriorating consumer confidence raised hopes of a pause in interest rate hikes by the Federal Reserve.

The tech-heavy Nasdaq Composite jumped 1.7 percent to extend gains for a third day running, while the S&P 500 rallied 1.5 percent and the Dow advanced 0.9 percent.

European markets rose on Tuesday ahead of key economic data releases due this week. The pan European STOXX 600 gained 1 percent.

The German DAX climbed 0.9 percent and France’s CAC 40 added 0.7 percent while the U.K.’s FTSE 100 surged 1.7 percent, led by commodity stocks on China stimulus optimism.

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