European stocks are poised to open broadly higher on Thursday as investors anticipate the European Central Bank (ECB) policy meeting later today.
While it is almost certain that the ECB will maintain current interest rates, there is speculation that they may hint at a potential rate cut in September.
In contrast, Asian markets closed mostly lower. Japan's Nikkei dropped over 2 percent, driven by the yen reaching a six-week high due to suspected intervention by the Bank of Japan.
Technology stocks were particularly impacted by reports suggesting the United States is considering stricter export controls on advanced semiconductor technology to China.
As trade tensions escalate, traders are also keenly observing potential policy announcements from a significant leadership meeting in Beijing.
The U.S. dollar remained near its four-month low against a basket of currencies, while gold continued to hover near record highs, influenced by expectations of potential interest-rate cuts by the Federal Reserve in September.
Oil prices extended their overnight gains following data revealing a larger-than-expected decrease in U.S. crude inventories.
U.S. stock markets ended with mixed results: semiconductor and large-cap stocks retreated over valuation concerns. In economic news, June saw a recovery in housing starts and building permits. Although the U.S. industrial production measure cooled, it still surpassed analyst expectations.
The Nasdaq Composite, heavily weighted with tech stocks, plummeted 2.8 percent, influenced by discussions of stricter regulations on China's chip industry and President Trump's remarks about Taiwan's defense payments to the U.S. The S&P 500 fell by 1.4 percent, while the Dow managed a 0.6 percent increase.
On Wednesday, European stocks experienced a broad decline triggered by a profit warning from Dutch semiconductor company ASML and worries about declining Chinese demand. The pan-European STOXX 600 index dropped by 0.5 percent. Germany's DAX fell by 0.4 percent, while France's CAC 40 slipped by 0.1 percent. Conversely, the U.K.'s FTSE 100 inched up by 0.3 percent.
