European Shares Set For Steady Open

(RTTNews) - European stocks are seen opening on a positive note Thursday after the S&P 500 set a closing record overnight.

Asian markets were mostly higher, led by mainland China and Hong Kong. Japan's Nikkei index fell over 1 percent as several heavyweight stocks traded ex-dividend and investors closely monitored fluctuates in the yen.

Japan's three main monetary authorities on Wednesday threatened intervention in currency markets to prevent disorderly and speculative moves in the currency.

The dollar strengthened against its major peers and U.S. Treasury yields retraced losses seen in the previous two session as hawkish comments from Fed Governor Christopher Waller put fears of higher-for-longer interest rates back in play.

Waller told a conference in New York that it is appropriate to reduce the overall number of rate cuts or push them further into the future in response to the inflation readings in the past two months.

Gold held steady below $2,200 per ounce while oil recovered some ground after two consecutive sessions of losses.

The European economic calendar remains heavy, with retail sales and unemployment data from Germany and U.K. GPP figures for the fourth quarter awaited later in the day.

Across the Atlantic, trading later in the day may be impacted by reaction to reports on weekly jobless claims, Chicago business activity and pending home sales.

Investors also eagerly await Friday's release of the Fed's preferred inflation gauge as well as speeches from Fed officials, Chair Jerome Powell and rate-setting committee member Mary Daly, for signals on the rate path.

U.S. stocks fluctuated overnight before closing mostly higher after a late-day surge as Treasury yields slipped on rate-cut optimism.

The Dow rallied 1.2 percent and the S&P 500 added 0.9 percent to snap three-day losing streaks while the tech-heavy Nasdaq Composite edged up half a percent.

European stocks hit new record highs on Wednesday as Sweden's Riksbank laid the groundwork for a rate cut as soon as May and data showed confidence in the euro zone economy ticked up in March.

The pan European STOXX 600 inched up 0.1 percent. The German DAX rose half a percent, France's CAC 40 gained 0.3 percent and the U.K.'s FTSE 100 finished marginally higher.