European markets may open higher; global cues mixed

Thu. August 21, 2008; Posted: 12:48 AM

(RTTNews) - The major European index futures are pointing towards a higher opening for the markets on Thursday. However, global cues are mixed. The U.S. market rebounded overnight on the back of gains in banking and energy-related stocks, while the Asian markets are trading lower on Thursday. Oil prices rose for a third day Thursday on concerns that Russian and Caspian Sea supplies may be disrupted after the U.S. agreed Wednesday to construct a missile-defense system in Poland. Additionally, a U.S. government report showed a decline in gasoline stockpiles for the second straight week.

On Wednesday, the Dow Industrials and the broader S&P 500 gained 0.6% each and the technology-heavy Nasdaq composite index advanced 0.2%. Meanwhile, in Asia Thursday, Japan's Nikkei 225 index is down 0.4%, South Korea's KOSPI is down 1.4%, Australia's All Ordinaries index is down 0.8%, Hong Kong's Hang Seng index is down 1.6% and China's Shanghai composite index is down 2.4%.

Brent crude oil for October settlement was up 64 cents at $115 a barrel by 11:13 p.m. ET in Asian trading. The contract rose by $1.11 to settle at $114.36 a barrel Wednesday on London's ICE Futures Europe exchange.

The major economic data scheduled for release in Europe are the Swiss trade balance, producer and import prices and ZEW survey, and U.K.'s retail sales. In the U.S., traders await the release of the Philadelphia Fed Survey results, the Conference Board's leading indicators index and the weekly jobless claims numbers.

The European markets rose for the first time in three days on Wednesday, as mining stocks rallied on rising copper prices, and semiconductor stocks gained following the release of forecast-beating quarterly earnings by Hewlett-Packard Co. The FTSEurofirst 300 index of pan-European blue chips closed up 0.51% at 1,165.31 and the narrower DJ Stoxx 50 index rose 0.40% to end at 2,846.73. Around Europe, the U.K.'s FTSE 100 index climbed 0.97% to finish at 5,371, France's CAC 40 index advanced 0.76% to end at 4,365 and Germany's DAX index rose 0.56% to close at 6,317.

On the currency front, the euro gained against the currencies of Japan, U.S. and U.K. in Asian trading on Thursday. At about 8:55 p.m. ET, the euro was quoted at 162.21 yen, $1.4786 and 0.7932 pound. The euro closed Wednesday's European session at 1.4701 against the dollar, 161.64 against the yen and 0.7910 against the pound.

In the European markets, Coloplast, Flughafen Wien, Gemalto, Holcim, Kuoni Reisen Holding, Nordex, Royal Boskalis Westminster, Umicore and Vienna Insurance Group are scheduled to report earnings. Fortis, Belgium's largest financial-services company by assets is scheduled to meet with shareholders in Brussels.

Fiat may decline after Merrill Lynch downgraded Italy's largest automaker to "Underperform" from "Buy," citing falling car and truck sales in Italy and the rest of Europe. IKB Deutsche Industriebank may move as KfW Group is scheduled to name a preferred buyer for IKB, the country's first casualty of the U.S. subprime mortgage crisis.

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