European Shares Seen Up After Upbeat China, US Data

European stocks may open slightly higher on Thursday as investors digest upbeat data from the U.S. and China.

Also, Moody’s Investors Service said the G20 economies will collectively grow at an annual rate of slightly more that 3 percent in 2017 and 2018, higher than the 2.6 percent registered in 2016.

A significant escalation of any of the situations in Korea, the South China Sea and other areas could have significant negative credit implications for the region, Elena Duggar, an associate managing director at Moody’s warned.

Tensions are again simmering between the the U.S. and North Korea after President Donald Trump declared “talking is not the answer” to the tense standoff.

Asian stock markets reversed early gains to turn mostly lower as renewed geopolitical worries overshadowed positive data releases.

Growth in China’s manufacturing sector rose unexpectedly in August, official data showed today, with the corresponding PMI posting an expansion for the 13th straight month.

However, the official non-manufacturing PMI fell to 53.4 from 54.5 in the previous month.

Elsewhere, the Bank of Korea held its key interest rate steady at record low, as widely expected.

Closer home, consumer confidence in the United Kingdom ticked slightly higher in August, the latest survey from GfK revealed with an index score of -10, up from -12 in July. Flash inflation and unemployment figures from the euro area are slated for release later in the day.

Oil prices continued to fall while U.S. gasoline futures jumped over 6 percent to reach their highest level in over two years.

The dollar held onto overnight gains after the release of upbeat data and amid speculation the European Central Bank may express concern about euro strength at a policy meeting coming up next week.

Overnight, U.S. stocks closed higher after data showed GDP grew 3.0 percent in the second quarter compared to the previously estimated 2.6 percent growth.

Private sector employment also surged in August and President Trump made a populist pitch for tax reform, helping investors shrug off geopolitical worries.

The Dow inched up 0.1 percent and the S&P 500 rose half a percent while the Nasdaq Composite jumped as much as 1.1 percent.

European markets rebounded from six-month lows on Wednesday after Trump’s measured response to North Korea’s missile launch. The pan-European Stoxx Europe 600 index gained 0.7 percent.

The German DAX and France’s CAC 40 index both rose by half a percent while the U.K.’s FTSE 100 added…

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