European stocks are anticipated to open on a cautious note Thursday, with technology stocks likely facing selling pressure. This follows Micron's revenue guidance, which met expectations but disappointed investors hoping for better results.
Additionally, markets may remain tense ahead of the first Presidential debate between Donald Trump and Joe Biden, scheduled for later in the day. The debate, which will take place in Atlanta, Georgia at 9:00 pm ET, will be moderated by CNN's Jake Tapper and Dana Bash, as both candidates campaign ahead of the hotly contested U.S. election in November.
On the economic front, investors are looking forward to the U.S. PCE price index data on Friday, the Federal Reserve's preferred measure of inflation. Other significant U.S. economic reports due this week include Q1 GDP, May's durable goods orders, and jobless claims.
The European economic calendar is relatively light, with the Eurozone economic sentiment survey results expected later in the day.
In Asia, markets declined as tech stocks resumed their downturn, and data indicated growth in China's industrial profits slowed significantly in May, raising concerns about economic recovery.
In the bond markets, Treasuries continued their sell-off while gold prices steadied below $2,300 per ounce after a two-day decline. Oil prices edged lower due to fears of slowing U.S. demand following data that revealed an unexpected inventory build.
In the U.S., stocks struggled for direction overnight but ended slightly higher as investors awaited key economic data and the results from the Federal Reserve's annual banking sector stress tests. Data showed sales of new single-family homes in the U.S. fell to a six-month low in May, attributed to elevated mortgage rates.
The Nasdaq Composite, led by technology stocks, gained 0.5%, the S&P 500 edged up 0.2%, and the Dow finished marginally higher. After the market closed, the Federal Reserve announced that all 31 tested banks are well-positioned to withstand a major recession, although they are not as strong as they were the previous year.
European stocks ended lower on Wednesday, unable to sustain early gains amid uncertainties surrounding the French election and the U.S. interest-rate outlook. The pan-European STOXX 600 declined by 0.6%, the German DAX slipped by 0.1%, France's CAC 40 fell by 0.7%, and the U.K.'s FTSE 100 eased by 0.3%.
