BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open flat to
slightly higher in cautious trade on Thursday as the U.K. elects its next
Parliament, with investors waiting to see just how large a majority the Labour
Party might get.

Elsewhere in France, a shaky coalition is emerging to block France's far right
from power as the second round of early general elections approaches.

Scores of candidates opposed to France's far-right National Rally (RN) party
bowed out of Sunday's second round of voting after the RN garnered the most
votes in the first round.

Asian markets were mostly higher, though a holiday in the United States made for
thin trading.

The dollar slipped while gold edged up as June's weak U.S. ISM PMIs, rising
jobless claims and signs of slowdown in private-sector employment helped raise
bets the Federal Reserve could move as soon as September to begin lowering
borrowing costs.

All eyes now remain on Friday's closely watched monthly U.S. jobs report, which
may shed light on how much the economy has slowed in 2024.

Factory orders and construction Purchasing Managers' survey results from Germany
are due later in the session, headlining a busy day for the European economic
news.

Oil prices eased in Asian trade, after having risen overnight on data showing a
surprisingly large decline in U.S. crude stocks.

U.S. stocks rose broadly overnight as weak economic data cemented hopes for an
interest-rate cut in September.

Treasury yields fell and the dollar slumped as data showed initial jobless
claims rose last week, the U.S. services sector contracted in June at the
fastest pace in four years and private-sector job creation slowed for a third
straight month, with pay gains for both job stayers and job changers slowing.

The tech-heavy Nasdaq Composite surged 0.9 percent and the S&P 500 gained half a
percent to hit new record closing highs in an abbreviated trading session while
the Dow ended flat with a negative bias.

European stocks closed on a firm note Wednesday after Fed Chair Jerome Powell
said inflation was heading downwards.

The pan European STOXX 600 advanced 0.7 percent. The German DAX and France's CAC
40 both rallied by 1.2 percent while the U.K.'s FTSE 100 added 0.6 percent.



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