FTG Blog - European Shares Seen Ticking Higher Ahead Of US Healthcare Vote

European Shares Seen Ticking Higher Ahead Of US Healthcare Vote

European stocks are likely to open higher on Thursday, after U.S. stocks rebounded from five-week lows overnight, taking in their stride a fall in oil prices, weak housing data and a suspected terrorist attack in London near the British parliament.

Oil futures rose in Asian deals after slipping back towards three-month lows on Wednesday as rising U.S. crude inventories underscored an ongoing global fuel supply overhang.

The dollar recovered from seven-week lows ahead of a House of Representatives vote on U.S. President Donald Trump’s healthcare bill later in the day.

If the healthcare bill fails, it could imperil Trump’s other policies such as tax reform and increased infrastructure spending.

The pound also held steady after declining on Wednesday amid the first reports of the London attack that authorities are treating as a terrorist incident.

On the economic front, U.K. retail sales data, consumer confidence figures from Germany and U.S. reports on weekly jobless claims and new home sales may sway investor sentiment as the day progresses.

Investors also await remarks by Federal Reserve Chair Janet Yellen and Minneapolis Fed President Neel Kashkari for more clues on the outlook for U.S. monetary policy.

Overnight, U.S. stocks closed mostly higher, with the Dow ending marginally lower, while the Nasdaq Composite rose half a percent and the S&P 500 added 0.2 percent to notch its first gain in five sessions.

The pan-European Stoxx Europe 600 index declined 0.4 percent on Wednesday on worries Trump will struggle to deliver his promises on tax cuts and regulatory reform.

The German DAX dropped half a percent, France’s CAC 40 index slid 0.2 percent and the U.K.’s FTSE 100 shed 0.7 percent.