European equity markets expected to open in the green as they await ECB announcements

Eurostoxx 50 shows 3,827.96 points -0.09%, the CAC 40 stands at 6.542.14 points +0.07%, the DAX 40 at 14,076.44 points -0.34%, the FTSE 100 7.580.80 points +0.05%, the SMI at 12.378.68 points 0.00%, the AEX at718.07 points +0.24%, the BEL 20 at 4.192.13 points +0.17%, theIBEX at 35 8.617.80 points +0.46%, the DJIA at 34,564.59 points +1.01%, the Nasdaq at 13.643.59 points +2.03%, the S&P 500 4,446.59 points +1.12%, the Nikkei 225 at 27,157.85 points +1.17% (price at 7:25)

Exchange rates at 06:50

Change from New York close

EUR/USD traded at 1.0915 +0.21%, EUR/JPY at 136.78 -0.06% and

USD/JPY at 125.32 -0.28%.

Hermès, Publicis and Virbac publish their first quarter sales on Thursday, while OVHcloud presents its half-year results. Teleperformance and TF1 will meet their shareholders in general meeting.

In addition, the French streaming music specialist Deezer is close to an agreement to go public through a merger with a listed investment vehicle (Spac) backed by the Pinault family and investment banker Matthieu Pigasse,

Deezer is in discussions to merge with I2PO. The transaction with Deezer could be announced in the coming days. The amount of the transaction could not be determined.

SHARES

European stock markets are expected to start Thursday's session in the green as investors await the European Central Bank's (ECB) monetary policy decision and the press conference of its president, Christine Lagarde.

At 7:35 a.m., the CAC 40 futures contract was up 38 points, or 0.6 percent, according to data from broker IG Markets. The DAX 40 contract was up 91 points, or 0.7 percent, and the FTSE 100 was up 17 points, or 0.2 percent.

Investors believe the ECB will not change its monetary policy on Thursday, but could open the door to an interest rate hike in the coming months, as the ECB is expected to raise interest rates.Investors believe the ECB will not change monetary policy on Thursday, but could open the door to higher interest rates in the coming months as inflation continues to accelerate in the euro zone despite economic uncertainties related to the war in Ukraine.

The market is currently factoring in two 25 basis point rate hikes by the ECB this year, an assumption that "seems reasonable" to Pimco. The ECB is not expected to announce any significant measures this week, but the release of its teams' new growth and inflation projections in June "will likely provide cover to end net asset purchases in July.

By raising rates this year, the ECB would follow in the footsteps of many other global central banks, including the U.S. Federal Reserve (Fed) and the Bank of England.Bank of England, amid high inflation fueled by soaring commodity prices. The Bank of Canada on Wednesday raised rates by 50 basis points and said further increases would be needed in the coming months. The central banks of South Korea and Singapore also announced rate hikes on Thursday to keep inflation in check.

In the U.S., Fed Governor Christopher Waller said Wednesday that inflation may have peaked in March and may now be easing. However, he said it was still too high and that the central bank would have to continue to raise rates sharply to stem the rise in prices. In this regard, he reiterated that he would have to vote in favor of a 50 basis point rate hike at the Fed's next policy meeting, scheduled for May 3 and 4.

Wall Street finished sharply higher on Wednesday, supported by the rise in the technology sector as bond yields eased. The Dow Jones Industrial Average (DJIA) rose 1% to 34,564.59 points. The broader S&P 500 index rose 1.1 percent to 4,446.60 points. The tech-heavy Nasdaq Composite index gained more than 2% to 13,643.59 points.

In the wake of the U.S. indexes, the main Asian stock markets rose on Thursday. In Tokyo, the Nikkei index gained 1.2% at the end of the session. The Hang Seng Index of the Hong Kong Stock Exchange gained 0.4%, and the Shanghai Composite gained 1%.

BONDS

U.S. Treasury yields continued to decline Thursday morning as investors remained focused on Tuesday's U.S. consumer price index, which sparked a debate over whether inflation has reached a peak.

At 7:35 a.m., the yield on the 10-year Treasury note, the market's benchmark security, was down to 2.675% from 2.698% Wednesday night.

CURRENCY

The euro rose against the dollar on Thursday morning, due to renewed risk appetite fueled by a moderating inflation outlook in the United States.

The single currency could appreciate sharply if European Central Bank (ECB) President Christine Lagarde's remarks at Thursday's meeting prompt the market to bet on an interest rate hike as early as June, according to Ebury.

Christine Lagarde is expected to reiterate that the ECB will raise interest rates "some time" after the end of asset purchases, but the market is betting on a rate hike as early as June, Ebury said.The ECB is expected to repeat that Christine Lagarde will raise interest rates "some time" after the end of asset purchases, but she may signal increased concern about persistently high inflation, Ebury analysts said.

OIL

Oil prices retreated on Thursday. The market is anticipating increased demand for fuel as health restrictions are eased around the world, says CMC Markets analyst Tina Teng, noting that U.S. airline Delta Air Lines reported a jump in bookings.

Oil prices hit a two-week high on Wednesday after Vladimir Putin said negotiations with Ukraine had stalled, sparking concerns about further losses of Russian oil globally.

At 7:25 a.m., the June North Sea Brent contract was down 34 cents at $108.44 a barrel, while Nymex-listed May light sweet crude (WTI) was down 72 cents at $103.53 a barrel.