Cites are expected to fall after the announcement of a slowdown in Chinese growth. The Eurostoxx 50 opened at 4,099.50 points up 0.12%, the CAC 40 and the DAX 30 remained stable with 6,558.38 points  and 15,788.98 points respectively. The FTSE 100 opened at 7,091.19 points down 0.47%, the SMI at 12,043.35 points (-0.23%), the AEX  at 744.95 points (+0.28%), the BEL 20 at 4,189.77 points (-0.52%), the IBEX 35 at 8,658.30 points (-0.42%), the DJIA at 34,933.23 points (+0.13%), the Nasdaq  at 14,644.95 points (-0.22%), the S&P 500 at  4,374.30 points (+0.12%) and the Nikkei 225 at 28,277.58 points (-1.16%).

The exchange rate is moving on a downward trend. EUR/USD stood at 1.1835 (-0.03%), EUR/JPY at 130.00 (-0.13%) and USD/JPY at 109.87 (-0.09%).

Investors will follow two auctions of assimilable Treasury bonds (OAT) and OAT indexed to euro zone inflation (OATei) on Thursday.

The main European equity markets are expected to fall on Thursday, after the announcement of a slowdown in economic growth in China in the second quarter and before a second day of the federal reserve chairman's (Fed) hearing before Congress. Investors will also follow the results of Morgan Stanley, the last of the major U.S. banks to release its quarterly accounts, and a series of U.S. economic indicators, including weekly jobless claims and June industrial production. At 7:35 a.m., the CAC 40 futures contract lost 16 points, or 0.3%, according to data from broker IG Markets. The DAX 30 contract was down 29 points, or 0.2%, and the FTSE 100 contract was down 18 points, or 0.3%. Asked wednesday by the House Financial Services Committee, Jerome Powell said inflation had strengthened in the United States and would likely remain high in the coming months before easing, while ruling out a rapid tightening of monetary policy. Supply difficulties related to the pandemic and the reopening of the economy have led to rapid increases in the prices of some goods and services, "which are expected to partially reverse as the effects of bottlenecks are absorbed", Jerome Powell told the House Financial Services Committee.

Before a new hearing of the Fed chairman by members of the Senate Banking Committee on Thursday, Wall Street ended in a contrasting fashion on Wednesday. The Dow Jones Index (DJIA) rose 0.1% to 34,933.23 points, and the broader S&P 500 Index rose 0.1% to 4,374.30 points. After spending most of the session in the green, the Nasdaq Composite finally ended down 0.2%, at 14,644.95 points. In China, gross domestic product (GDP) growth slowed in the second quarter to a level that remains high in the current pandemic environment. China's GDP grew by 7.9% in the second quarter compared to the corresponding period of 2020, as expected by economists. After these announcements, the main Asian indices present a contrasting picture on Thursday. At the end of the session, the Hang Seng gained 1.2% in Hong Kong and the Shanghai Composite Index gained 0.4%. In contrast, the Nikkei index of the Tokyo Stock Exchange lost 1.2%.

US Treasury yields continue to fall on Thursday, as investors analyze the Fed chairman's remarks during the first of his two days of congressional hearings. At 7:35 a.m., the yield on the ten-year bond, the market benchmark, stood at 1.334%.  Jerome Powell appeared to downplay any direct link between the Fed's purchases of mortgage-backed loans (MBS) and soaring house prices. According to him, purchases of Treasury bonds and MBS are equivalent in terms of easing financial conditions. The comments suggest that, as part of a phase-out process from Fed bond purchases, Treasury bonds and MBS will be treated the same, although some Fed officials have called for a reduction in purchases of mortgage-backed securities to curb the jump in the real estate market.

The euro is stable Thursday against the dollar, while investors continue to react to Jerome Powell's remarks to Congress. The central banker indicated that the dollar had no good competitor as a reserve currency and was not in danger of losing its crown. Thus, the dollar weakened after a June U.S. jobs report that beat expectations and strengthened when the ISM services index for the same month disappointed, HSBC analysts said.

Oil contracts continue their decline on Thursday after losing more than 2% on Wednesday, penalized by data indicating a decline in gasoline demand in the United States as well as press reports about a compromise between the United Arab Emirates and the Organization of the Petroleum Exporting Countries on the production. At 7:25 a.m., the September contract for North Sea Brent lost 49 cents to $74.27 a barrel and the August contract for Nymex-traded light sweet crude (WTI) lost 55 cents to $72.58 a barrel.