(RTTNews) - The European markets are likely to show some strength in early trading on Thursday, as Wall Street finished higher overnight and the Asian markets are trading mixed on Thursday. The FTSE 100 and the CAC 40 index futures are showing strength, while the DAX futures are showing weakness. Some degree of profit taking may not be ruled out following the gains in the past two sessions. That said, sentiment over the course of trading may largely hinge on the preliminary second quarter GDP report from the U.S. to be released by the mid-session in Europe.

Crude oil settled higher for a third day Wednesday on fears about Tropical storm Gustav causing disruptions to oil installations in the Gulf of Mexico region. Miners including oil producers may gain on higher commodity prices. Additionally, caution may prevail ahead of the release of the German inflation data and the U.S. GDP reports.

Oil prices continued to rise in the Asian session Thursday, with Brent crude for October settlement gaining 28 cents to $116.50 a barrel by 10:51 p.m. ET. The contract closed up $1.59 at $116.22 a barrel on Wednesday on London’s ICE Futures Europe exchange.

The U.S. market closed Wednesday’s session with notable gains following the release of an economic report showing a bigger than expected increase in durable goods orders. The Dow closed up 0.8% at 11,502, the Nasdaq advanced 0.9% to end at 2,382 and the broader S&P 500 climbed 0.8% to finish at 1,281.

In Asia Thursday, Australia’s All Ordinaries index is up 1.1%, China’s Shanghai composite index is up 7%, and Japan’s Nikkei 225 index is up 0.1%, while South Korea’s KOSPI is down 0.6% and Hong Kong’s Hang Seng index is down 1.3%.

The economic data scheduled for release in the European region include the German CPI and unemployment rate, Euro-Zone consumer confidence, and Euro-Zone M3 money supply. Meanwhile, the U.S. traders await the release of preliminary GDP data for the second quarter and initial jobless claims for the week ended August 23.

The European markets closed higher for a second day Wednesday, tracking the gains on Wall Street and after rising crude oil and metals prices lifted energy and mining stocks. The FTSEurofirst 300 index of pan-European blue chips closed up 0.2% at 1,173 and the narrower DJ Stoxx 50 index rose 0.3% to 2,868. Around Europe, the U.K.’s FTSE 100 index climbed 1.1% to 5,528 and France’s CAC 40 index rose 0.1% to 4,373, while Germany’s DAX index fell 0.3% to 6,321.

On the currency front, the euro soared to a 41/2-month high of 0.8062 against the British pound in the Asian session Thursday. The euro also strengthened against the U.S. dollar and Japan yen, rising to $1.4793 and 162.04 yen, respectively.

In the European markets, Accor may move as Europe’s biggest hotelier agreed to grant a third board seat to buyout firms Colony Capital LLC and Eurazeo after the investors said they would not seek control of the company. K+S may rise after reports indicated that the company is planning to expand its potash production.

ThyssenKrupp, Germany’s largest steelmaker, may react to reports that the company will try to find a buyer for its maintenance and logistics unit within six months. Meanwhile, Air Berlin, Dockwise, Parmalat, and Swiss Life Holding are scheduled to report earnings.

Givaudan is scheduled to holds its half yearly investors’ conference and IKB Deutsche Industriebank, Germany’s first casualty of the subprime mortgage crisis, is slated to hold its shareholders meeting.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Australia, Economy, Eurozone, Japan, Releases, Switzerland, UK, USA.

Subscribe by RSS Subscribe by Email