RTTNews - The major European markets are poised to open in positive territory on Friday, taking cues from positive closing on Wall Street amid better-than-expected economic data, raising hopes that the worst for the economy might be over. Positive trading across the markets in Asia-Pacific region might also lift sentiment.
In the U.S., stocks finished in the green snapping the three-day losses as traders reacted to some better-than-expected economic data that raised hopes of recovery.
A report from the Philadelphia Federal Reserve revealed that its index of activity in the manufacturing sector in the mid-Atlantic region rose to a negative 2.2 in June from a negative 22.6 in May, sharply higher than the modest increase of negative 17.0 expected by the economists.
Separately, a report from the Conference Board showed that its leading indicators index rose 1.2% in May following an upwardly revised 1.1% increase in April. Economists had expected the index to increase by 1.0%.
While employment data from the Labor Department showed an increase in weekly jobless claims to 608,000 from the previous week's revised figure of 605,000, some optimism was generated by a drop in continuing claims, which fell by 148,000 in the week ended June 6th to 6.687 million.
The Dow closed up 58.42 points or 0.7% at 8,556 and the S&P 500 closed up 7.66 points or 0.8% at 918. However, the Nasdaq closed down flat at 1,808, with a loss of 0.34 points or 0.02%
Meanwhile, the European markets snapped the four days of losses and ended in positive territory on Thursday on hopes of stabilization in the global economy following release of better than expected economic data in the U.S.
The FTSEurofirst 300 index of pan-European blue chips closed 0.57% higher at 851, while the narrower DJ Stoxx 50 index rose 0.66% to 2,112. The U.K.'s FTSE 100 index rose 0.06% to 4,281, while France's CAC 40 index climbed 1.04% to 3,194 and Germany's DAX index surged up 0.78% to 4,837.
On the economic front, Germany's Federal Statistical Office said that the producer price index or PPI dropped 3.6% year-over-year in May, after falling 2.7% in April, and came in line with economists' expectations.
At 3.30am ET, the Central Bureau of Statistics in Netherlands would release the results of the latest consumer confidence survey. The consumer confidence index is expected to decline to minus 24 in June from minus 23 in May. First quarter unemployment data is due from the Italian statistical office at 4.00am ET. According to economists, the jobless rate would rise to 7.3%.
Crude oil price is trading higher and is presently quoted at $71.60 a barrel in electronic trading. The US dollar declined against its European and Swiss counterparts in early trading. However, the greenback rose to a 3-day high against the yen.
In corporate news, Bankers Investment Trust (BNKR.L) might see some upside after reporting a profit for the first half ended 30 April 2009 compared to loss in the same period last year.
Taylor Wimpey (TW.L) might react to news that the company sees continued stability in the UK housing market despite some regional variations. The company further noted that it is well placed to benefit from the market conditions that are showing signs of stability.
Sports car-maker Porsche might react to news that the company is in talks with Qatar in connection with the sale of its stake in Volkswagen AG.
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