FX.co ★ European Shares Set For Steady Open

European stocks are expected to commence positively today, following the S&P 500's recording a closing high overnight.

Most Asian markets fared well, primarily led by mainland China and Hong Kong. However, Japan's Nikkei index dipped over 1 percent, as prominent stocks traded ex-dividend and exchange rate fluctuations were closely observed by investors.

On Wednesday, Japan's main monetary authorities cautioned that they may intervene in currency trading to prevent disorderly and speculative shifts in currency rates.

The US dollar reinforced against its key counterparts, and US Treasury yields bounce back after losses in the prior two sessions. This happened due to remarks by Fed Governor Christopher Waller, which caused the fears of persistent high interest rates to resurface.

Speaking at a New York conference, Waller suggested that, in response to recent inflation readings, it might be suitable to decrease the overall number of rate cuts or delay them.

Gold remained stable below $2,200 per ounce, while oil regained some previous losses after two straight sessions.

The European economy today will be influenced by Germany and the UK’s retail sales and unemployment figures, in addition to awaiting the UK’s fourth quarter GPP data later in the day. Trading later today across the Atlantic may be subject to weekly jobless claims, Chicago business activity, and pending home sales reports.

Investors are also anticipating the release of the Fed's preferred inflation gauge and speeches from Fed officials, including Chair Jerome Powell and rate-setting committee member Mary Daly on Friday. This anticipation is aiming to gain insights into the potential path of interest rates.

US stocks experienced fluctuations overnight, but mostly closed higher, due to a late surge as treasury yields decreased through rate-cut optimism. The Dow soared 1.2 percent, the S&P 500 grew 0.9 percent ending a three-day losing streak, and the tech-centered Nasdaq Composite saw a slight rise of half a percent.

European stocks reached record highs on Wednesday. This was spurred by Sweden's Riksbank prepping for a possible rate cut as early as May and data demonstrating a growth in confidence in the euro zone economy in March. The Pan European STOXX 600 slightly increased by 0.1 percent, Germany's DAX rose half a percent, France's CAC 40 climbed 0.3 percent, and the UK's FTSE 100 closed marginally higher.