FX.co ★ European Shares Seen Slightly Higher Ahead Of BoE Rate Decision

European equity markets are likely to experience slight increases in the opening on Thursday as investors respond to robust trade data from China. Chinese imports saw an 8.4 percent rise in April, surpassing estimates, while exports grew by 1.5 percent year-on-year, aligning with predictions.

In other news, real wages in Japan, adjusted for inflation, saw a 2.5 percent year-on-year decrease in March - the 24th consecutive month of decline. Asian stock markets registered mixed results, with Chinese and Hong Kong markets improving in response to the trade data disclosure.

The yen remained stable following a statement by Bank of Japan Governor Kazuo Ueda, voicing concerns about significant, one-sided yen falls negatively impacting the economy and therefore being undesirable. Gold maintained its level ahead of U.S. CPI data release next week, while oil expanded on gains from the previous night amidst mixed inventory data.

Investors await further clarity regarding a potential ceasefire between Israel and Hamas, following U.S. President Joe Biden's warning that arms transfers would halt if Israel invaded the densely populated area of Rafah.

Later today, the Bank of England is expected to maintain its interest rate at a 16-year-high due to ongoing high inflation. The latest economic forecast, released simultaneously with the interest rate announcement, may provide insights into future inflation patterns and the trajectory of the UK economy.

Across the Atlantic, the Labor Department's report on initial jobless claims, coupled with recent earnings news, is likely to catch investors' attention. U.S. stocks closed mixed overnight as Treasury yields increased following a 10-year notes auction.

The Dow grew by 0.4 percent, marking a six consecutive session of gains and closing above 39,000 points for the first time in five weeks. In contrast, the S&P 500 closed slightly lower and the Nasdaq Composite fell 0.2 percent.

European stock markets saw a fourth consecutive session of gains on Wednesday following the Swedish central bank's first interest rate cut in eight years, signalling two additional reductions for the latter half of the year. The pan-European STOXX 600 increased by 0.3 percent, Germany's DAX by 0.4 percent, France's CAC 40 by 0.7 percent, and the UK's FTSE 100 by half a percent.