Concerned about inflation and interest rates, European equity markets are expected to decline. The Eurostoxx 50 opened at 3,647.87 points (+2.62%), the CAC 40 at 6,269.73 points (+2.50%), the DAX 40 at 13,828.64 points (+2.17%), the FTSE 100 at 7,347.66 points (+1.44%), the IBEX 35 at 8,312.60 points (+2.13%), the DJIA at 31,834.11 points (-1.02%), the Nasdaq at 11,364.24 points (-3.18%), the S&P 500 at 3,935.18 points (-1.65%) and the Nikkei 225 at 25,840.73 points (-1.42%).
On the exchange rate side, the change from the close in New York indicates the EUR/USD is displayed at 1.0524 (+0.09%), the EUR/JPY at 136.61 (-0.04%), the USD/JPY at 129.81 (-0.14%).
European equity markets are expected to fall sharply at the opening on Thursday, as the announcement of higher-than-expected inflation in the United States continues to fuel fears about interest rates and a possible slowdown in the economy. At 7:35 a.m., the CAC 40 futures contract lost 126 points, or 2%, according to data from broker IG Markets. The CONTRACT on the DAX 40 was down 276 points, or 2% also, and the FTSE 100 contract gave up 112 points, or 1.5%.
The latest U.S. consumer price report, released Wednesday, provided little guidance for Federal Reserve (Fed) officials to reduce the pace of rate hikes this summer. It could also lead a growing number of US central bankers to conclude that rates will need to be raised to a level close to 4% over the next 12 to 18 months, rather than around 3%, as most of them expected in March. St. Louis Fed President James Bullard said Wednesday he was in line with the prospect of a 50 basis point hike in U.S. policy rates at each of the next two monetary policy meetings.
Before these remarks, Wall Street closed sharply lower on Wednesday. At the end of a very volatile session and after several passages in the green, the Dow Jones index (DJIA) finally lost 1%, to 31,834.11 points. Over the last five sessions, the index is down the biggest in nearly two years. The broader S&P 500 index ended down 1.7% to 3,935.18 points. The tech-rich Nasdaq Composite fell 3.2% to 11,364.24 points. In the wake of Wall Street, the main Asian stock exchanges are trading in the red on Thursday. At the end of the session, the Nikkei index lost 1.6% in Tokyo and the Hang Seng index lost 1.7% in Hong Kong. The Shanghai Composite Index was down 0.2%. On Thursday, investors will focus on many corporate results in Europe. Figures for UK gross domestic product (GDP) in the first quarter, weekly jobless registrations and producer prices in the US will also be scrutinised.
 U.S. Treasury yields continue their decline on Thursday morning. Ten- and 30-year yields on Wednesday fell the biggest three-session since March, as investors remained concerned about the economic outlook after the latest U.S. inflation figures showed unexpectedly large underlying tensions persist on prices. The spread between two- and ten-year securities narrowed to 27 basis points on Wednesday, due to growing concerns by bond investors about the U.S. economy.
The euro is little changed against the dollar on Thursday morning. However, the prospect of the European Central Bank (ECB) ending its quantitative easing program and negative interest rates could support the euro more than many investors expected, MUFG.
Oil futures lost more than 1% on Thursday morning, after ending sharply higher on Wednesday, with Brent gaining 6% and Nymex-listed light sweet crude (WTI) nearly 5%. The announcement by the U.S. Department of Energy of an unexpected increase in U.S. crude inventories, despite an acceleration in refining activity, and Hungary's proposal to exclude oil shipments by pipelines from the embargo on oil. Russian etrole envisaged by the European Union, weigh on the prices of black gold Thursday morning. At 7:25 a.m., the July Contract for North Sea Brent was down $1.76, or 1.6%, to $105.75 a barrel, and the June contract for WTI lost $1.80, or 1.7%, to $103.94 a barrel.