European Shares Seen Up As Yields Dip After Mixed Fed Remarks

(RTTNews) - European stocks are seen opening higher on Thursday after robust earnings helped Wall Street's main indexes end a volatile session sharply higher overnight.

Asian markets followed suit while U.S. stock futures were little changed ahead of a busy day on the economic calendar, with reports on weekly jobless claims, retail sales, industrial production and import and export prices awaited later in the day.

The U.S. dollar held below a three-month high and bond yields eased after Chicago Fed President Austan Goolsbee cautioned market participants not to overreact to hot inflation data.

"Even if inflation comes in a bit higher for a few months...it would still be consistent with our path back to the 2 percent target," Goolsbee said in prepared remarks at an event hosted by the Council on Foreign Relations in New York.

Fed Vice Chair for Supervision Michael Barr, meanwhile, noted that it was too early to be assured price stability will be restored without a significant blow to jobs or economic growth.

The Japanese yen firmed up despite weak data showing Japan unexpectedly slipped into recession.

The Australian dollar and bond yields slipped after data showed Australian jobless rate climbed to a two-year high in January, signaling a potential labor market slowdown.

Gold held steady near a two-month low while oil extended overnight losses after EIA data showed a big increase in crude inventories in the U.S. in the week ended February 9th.

U.S. stocks rose sharply overnight after having suffered heavy losses in the previous session on concerns over elevated inflation and interest rates staying higher for longer.

A calmer bond market amid little economic news helped lift the tech-heavy Nasdaq Composite up 1.3 percent, while the S&P 500 climbed 1 percent and the Dow edged up 0.4 percent.

European stocks advanced Wednesday on the back of tame U.K. inflation data and some encouraging corporate earnings updates.

The pan European STOXX 600 inched up half a percent. The German DAX rose 0.4 percent, while France's CAC 40 and the U.K.'s FTSE 100 both added around 0.7 percent.