European Shares Likely To Open On Steady Note

(RTTNews) - European stocks may open flat to slightly higher on Thursday amid bets that policymakers at the Fed, ECB and BOE will cut rates at their June meetings.

Fed officials will likely reduce their benchmark interest rate later this year, Chair Jerome Powell said Wednesday but nevertheless emphasized the need for more evidence that inflation is easing.

Atlanta Fed President Raphael Bostic, meanwhile, expressed concern about the pace of inflation and indicated it would be appropriate to reduce rates in the fourth quarter.

According to the CME FedWatch Tool, there is a nearly 99 percent likelihood of rates remaining unchanged at the Fed's May policy meeting and a 62.3 percent probability of a cut at the June gathering.

Elsewhere, ECB's Robert Holzmann said the central bank could start cutting interest rates in June but warned the ECB should not get too far ahead of its U.S. counterpart.

The British pound hovered near a four-month low on bets the Bank of England will deliver more interest-rate cuts than the Fed this year.

In economic releases, Eurozone producer price data and Composite PMI numbers may attract investor attention later in the day.

Across the Atlantic, reports on weekly jobless claims and the U.S. trade deficit may attract attention, although trading activity is likely to be somewhat subdued ahead of the release of the more closely watched monthly jobs report on Friday.

Asian stocks traded mostly higher, with China, Taiwan and Hong Kong markets closed for a public holiday.

The dollar retreated from a four-month high, while gold continued its record-breaking rally, trading above $2,300 per ounce.

Crude extended overnight gains as investors grappled with supply risks stemming from Ukrainian attacks on Russian refineries and the potential for further escalation in Middle East conflicts.

U.S. stocks fluctuated before ending mixed overnight as Fed officials emphasized the need for more debate and data before cutting rates.

In economic releases, private sector job growth expanded in March at its fastest pace since July 2023 while the services industry growth slowed further in the month, separate reports showed.

The Dow slipped 0.1 percent to extend losses for a third day running, while the S&P 500 inched up 0.1 percent and the tech-heavy Nasdaq Composite added 0.2 percent.

European stocks closed higher on Wednesday after a measure of euro zone inflation fell more than expected in March.

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