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European Shares To Open Higher On US Tax Reform Optimism

BRUSSELS/FRANKFURT/PARIS (Alliance News) - European stocks may open higher on Thursday after US ...

Alliance News 7 December, 2017 | 7:23AM
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BRUSSELS/FRANKFURT/PARIS (Alliance News) - European stocks may open higher on Thursday after US markets regained some equilibrium to end mixed overnight despite falling oil prices and concerns about the possibility of violence in the Middle East.

For the time being, it seems that traders have shrugged off concerns surrounding US President Donald Trump's recognition of Jerusalem as Israel's capital, as well as lingering worries over a potential US government shutdown.

With ADP private sector jobs data coming in slightly higher than forecast, the focus now turns to Friday's November jobs report, which could showcase US jobs growth led by acceleration in rebuilding in the hurricane zones.

The day's economic calendar remains light, with industrial production figures from Germany and revised quarterly national accounts from the euro area slated to be released later in the session.

The dollar edged up against its peers and oil rose after falling nearly 3% overnight while gold held near four-month lows.

The Canadian dollar extended overnight losses after the Bank of Canada maintained its target for the overnight rate at 1%.

Asian stock markets recovered from early falls to trade mostly higher as investors awaited tax reform developments in the US.

Media reports suggest that the US Congress is on track to approve legislation that would avert a partial government shutdown over the weekend.

Republicans hope a final bill on tax reform can be agreed upon by the self-imposed Dec. 22 deadline.

Overnight, the Dow Jones Industrial Average slid 0.2% and the S&P 500 edged down marginally to register its fourth straight session loss while the tech-heavy Nasdaq Composite rose 0.2%.

European markets recouped early losses to end mixed on Wednesday. The pan-European Stoxx Europe 600 index eased 0.1%.

The German DAX dropped 0.4% and France's CAC 40 closed marginally lower while the UK's FTSE 100 rose by 0.3%.

Copyright RTT News/dpa-AFX

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