Investors are keeping a close eye on European markets as they open Thursday, with German growth and consumer sentiment data in focus as well as the ongoing U.S. debt ceiling negotiations. Data released Wednesday showed that Germany’s business outlook deteriorated for the first time since October, with an expectations gauge by the Ifo institute slipping to 88.6 in May from 91.7 the previous month. Ratings agency Fitch flagged the possibility of a downgrade to the United States’ ‘AAA’ rating late Wednesday, saying while it still expected lawmakers to reach a deal before the early-June deadline, the ongoing uncertainty had brought up risks of a potential U.S. default.
Corporate earnings are scheduled from the likes of food giant Tate & Lyle, specialty chemicals company Johnson Matthey and water supply firm United Utilities, while the chipmaking sector is likely to be in focus after a robust outlook from Nvidia. Oil prices edged lower Thursday, retreating from three-week highs amid growing pressure from a strong dollar as uncertainty surrounding the U.S. debt ceiling negotiations mounted. Gold futures also fell 0.5% to $1,955.60/oz, while EUR/USD traded 0.2% lower at 1.0732.