European Shares Poised For Positive Start

European stocks may open a tad higher on Thursday despite skepticism over the durability of the recent U.S. market rally.

Investors will continue to monitor economic data to gauge the potential impact of rising interest rates on growth.

Asian markets traded mixed, the dollar clung to gains and gold prices slipped after strong U.S. data released overnight suggested that the Federal Reserve may have to keep interest rates higher for longer. oil prices held steady near a three-week high after recent strong gains.

After September’s ISM services index and the private payrolls report by ADP both beat estimates, market attention now shifts to the weekly jobless claims report later today and the more closely watched nonfarm payrolls report due on Friday.

Closer home, factory orders and construction Purchasing Managers’ survey data from Germany and retail sales from the euro area are due later in the session.

Overnight, U.S. stocks ended a choppy session modestly lower after two days of strong gains.

Treasury yields rebounded as hawkish commentary from the Reserve Bank of New Zealand coupled with solid private payrolls and services sector data dampened hopes for a pause or slowdown in aggressive hikes from the Federal Reserve.

The Dow slipped 0.1 percent, the tech-heavy Nasdaq Composite shed 0.3 percent and the S&P 500 edged down 0.2 percent.

European stocks snapped a three-day winning streak on Wednesday as signa of a slowdown in regional business activity cemented fears of a recession.

The pan European Stoxx 600 fell 1 percent. The German DAX tumbled 1.2 percent, France’s CAC 40 index declined 0.9 percent and the U.K.’s FTSE 100 gave up half a percent.

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