European stocks are expected to open higher Thursday, taking their cues from a strong finish on Wall Street and a positive performance in Asia.
Additionally, the surge in the price of crude oil is expected to lift the oil majors in Europe after crude futures in New York rose to a two-month high following news of a surprise drop in U.S. oil inventories.
"The positive close on Wall Street and a very strong performance in Asia sees European stocks higher. We have also seen U.S. futures jump higher," said Matt Buckland, a dealer at CMC Markets ,Wall Street Journal reports.
Meanwhile, the day, which began with a sharp loss driven by a big drop in China's biggest stock market, followed a trading pattern seen in markets around the world this week. Stocks have alternately advanced and retreated as investors shuttle between worries about the economy's challenges, namely consumer spending and high unemployment, and nascent signs of healing.
Although stocks recovered, Treasury prices held on to most of their gains. Government debt is a safe-haven investment in a struggling economy , Huffington Post reports.
"Overnight selling in China has combined with concerns that equity markets are simply looking overbought as the summer draws to a close" said Anthony Grech, market strategist at IG Index,
Concerns about the ability of China's economy to act as a catalyst for global recovery also hobbled U.S. stocks. The Dow Jones Industrial Average was recently down 12 points, or 0.3% , Wall Street Journal Blogs reports.
Russian President Vladimir Putin, in his speech dedicated to the Day of the Russian Navy, recalled the threats that Russia is currently facing from a number of countries.