European stocks are poised for a mixed open on Thursday morning as investors digest comments from the U.S. Federal Reserve chief and monitor events in Italy.
The FTSE 100 is seen off by 15 points at 7,495; the DAX 30 is expected to start higher by 6 points at 12,293; and the CAC 40 is set to open lower by 4 points at 5,487; according to IG.
In Asian trade, sentiment was muted after Jerome Powell, the U.S. Fed chairman, said that the bank was a “long way” from neutral on interest rates. The comments pushed the dollar to an 11-month high against the Japanese yen.
In Europe, the focus is on Italian politics. Prime Minister Giuseppe Conte said on Wednesday that the government deficit will be decreased in the next three years, despite the surge planned for 2019. Market players are worried about extra spending in the third largest euro economy, given its 130 percent of GDP debt pile. European affairs minister Paolo Savona said that there is no chance that Italy will default on its debt.
Elsewhere, shares in Greek banks will also be monitored after a massive plunge on Wednesday. Investors fear that regulators will demand further capital.
In terms of earnings, the calendar is thin with only Ted Baker expected to report.
On the date front, new car registrations due in the U.K. at 9 a.m. London time.
Source: CNBC
