European Shares Likely To Open On Firm Note

European stocks may open on a positive note Thursday, with earnings and ongoing debate over interest-rate cuts likely to be in focus.

Asian markets traded mostly higher in cautious traded ahead of the Lunar New Year holidays.

China’s Shanghai Composite index rose about 1 percent after the country replaced the head of its securities regulator in an apparent move to restore investor confidence and stabilize the stock market.

Data showed earlier today that China’s consumer prices fell last month at the fastest pace since the global financial crisis, piling pressure on the government to unveil more stimulus.

Factory gate prices fell for the 16th straight month, adding to deflation worries.

Japan’s Nikkei index jumped over 2 percent to a fresh 34-year high after reports that the Bank of Japan was unlikely to raise interest rates aggressively, even after ending its negative interest rate policy.

The U.S. dollar traded in a tight range while gold edged down slightly after Boston Fed President Susan Collins said rate cuts could come later this year.

Oil extended gains for a fourth consecutive session as Israeli rejected a ceasefire offer and vowed to continue the fight against Hamas, now in its fifth month, until achieving “absolute victory”.

The U.S. economic calendar remains relatively quiet today, with a report on weekly jobless claims likely to attract attention.

On the earnings front, Disney shares jumped 8 percent in after-hours trading after the entertainment giant reported higher-than-expected earnings for its fiscal first quarter and forecast a 20 percent earnings gain in fiscal 2024.

U.S. stocks rose overnight as strong corporate earnings outweighed investor anxiety over when the Federal Reserve could cut interest rates.

The Dow edged up 0.4 percent and the S&P 500 added 0.8 percent to set new record closing highs, with the tech-heavy Nasdaq Composite climbed 1 percent.

European stocks closed on a sluggish note Wednesday as traders weighed earnings, M&A news and hawkish comments from Fed officials.

The pan European STOXX 600 dipped 0.2 percent. The German DAX and the U.K.’s FTSE 100 both fell around 0.7 percent while France’s CAC 40 shed 0.4 percent.