BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open
higher on Thursday as easing inflation led investors to price two U.S. rate cuts
in 2024.

According to CME FedWatch, over 50 percent of traders are pricing in a rate cut
in September.

Asian markets traded sharply higher after all three major U.S. averages notched
record closing highs overnight.

Australian and New Zealand markets led regional gains as government bonds
rallied.
Japanese shares traded notably higher despite the economy contracting more than
expected in the first quarter of 2024.

A weaker dollar helped gold prices push higher close to $2,400 per ounce. Oil
prices rose after data showed a bigger-than-expected draw in commercial crude
stockpiles.

Trading later in the day may be impacted by reaction to another slew of U.S.
economic data, including reports on weekly jobless claims, industrial production
and import and export prices.

U.S. stocks rose sharply overnight as April retail sales unexpectedly came in
flat, consumer prices rose less than expected and the core CPI slowed - boosting
hopes for interest rate cuts by the Federal Reserve in the near future.

Treasury yields dipped as data showed consumer prices increased by 0.3 percent
in April after rising by 0.4 percent in March. Economists had expected consumer
prices to climb by another 0.4 percent. On an annual basis, the CPI slowed to
3.4 percent 3.5 percent, matching expectations.

Core inflation decelerated from 3.8 percent to 3.6 percent, marking the lowest
reading ex-food and energy since April 2021.

The S&P 500 climbed 1.2 percent to break above 5,300 for the first time and the
Dow rose 0.9 percent closer to the 40,000 milestone while the tech-heavy Nasdaq
Composite surged 1.4 percent.

European stocks closed broadly higher on Wednesday as investors cheered the
cooler-than-expected U.S. inflation print as well as encouraging Eurozone
industrial production and GDP figures.

The pan European STOXX 600 gained 0.6 percent. The German DAX climbed 0.8
percent, while France's CAC 40 and the U.K.'s FTSE 100 both edged up 0.2
percent.



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