Global equities seek direction
LONDON – European stocks rallied on Thursday morning, contradicting the trend seen in the United States and Asia as global investors monitored economic data and central banks.
The pan-European Stoxx 600 rose 0.6% at the start of trading, with travel and leisure stocks adding 1.8% to lead the gains as all sectors entered positive territory except basic resources , which fell 0.7%.
European markets received a weak pass from Asia-Pacific, where the Hong Kong Hang Seng Index led the declines among major indices as casino stocks fell amid regulatory concerns.
In the United States, equity futures were slightly lower when pre-market trading began on Thursday after a rebound on Wall Street as the market tried to avoid the seasonally weak September.
Data on US jobless claims is expected to be released Thursday, with economists polled by Dow Jones expecting a total of 320,000 Americans filed for unemployment insurance in the week ending September 11.
In recent days, investors have reacted to weaker US inflation data, which tempered expectations of an imminent decline in asset purchases by the Federal Reserve, and weak retail sales figures from China, which suggest a slowing of the global economic recovery.
In other news, British Prime Minister Boris Johnson reshuffled his cabinet on Wednesday, replacing a number of high-ranking ministers and urging his government to tackle economic inequality in the aftermath of the pandemic.
German Finance Minister Olaf Scholz will face questions from lawmakers on the alleged failures of the federal anti-money laundering agency next Monday. The questioning will take place a few days before the country’s elections in which Scholz is favorite to succeed Chancellor Angela Merkel with her Social Democratic Party leading the polls.
In terms of individual stock price movement, UK online trading firm IG Group jumped 4.3% to lead the Stoxx 600 after its quarterly earnings report.
At the bottom of the index, German auto parts maker Continental plunged more than 12% after its Vitesco powertrain split.
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