European Stock Futures Mixed; Powell Reassures But Covid Worries Exist

At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.3% higher, CAC 40 futures in France climbed 0.3% but the FTSE 100 futures contract in the U.K. fell 0.5%.

The Federal Reserve concluded its two-day policy meeting on Wednesday and reassured investors that it was committed to maintaining an accommodative monetary policy for some time.

Chairman Jerome Powell indicated that while inflation is expected to reach 2.4% this year, above the central bank's 2% target, this would be a temporary surge and he did not currently see the Fed raising its benchmark overnight interest rate through 2023. 

The Fed also projected the U.S. economy will grow by a hefty 6.5% this year, thanks in part to massive federal fiscal stimulus and optimism around the success of coronavirus vaccines.

Back in Europe, the region’s vaccination program has been more problematic, with the European Medicines Agency’s safety review into the Covid-19 vaccine developed by AstraZeneca (NASDAQ: AZN) and the University of Oxford due to be released later Thursday.

A number of European countries have suspended the use of this vaccine over blood clot worries, despite the World Health Organization and the EMA defending the use of the drug.

In the U.K., which has been one of the world's vaccination success stories, the country’s National Health Service warned of a "significant reduction in the weekly supply" of vaccines next month, citing supply issues. 

Elsewhere, the Bank of England will hand down its latest policy decision later in the session, but the market isn’t expecting any significant changes.

In corporate news, earnings are expected from the likes of Hugo Boss (DE: BOSSn) and Fevertree Drinks (LON: FEVR), while Credit Suisse's (SIX: CSGN) annual report showed the Swiss bank’s executives earned 12% less in total compensation in 2020. The U.K.'s National Grid PLC (LON: NG) meanwhile said it plans to sell a majority stake in its gas transmission business later this year.

Oil prices weakened Thursday after government data showed another rise in U.S. crude inventories, prompting worries of a sustained hit to demand.

The U.S. Energy Information Administration reported Wednesday that crude stocks rose by 2.4 million barrels last week, for the fourth consecutive week after refineries in the southern states were forced to shut due to severe cold weather. 

Data from the American Petroleum Institute, released on Tuesday, had shown a surprise draw of 1 million barrels, and had raised hopes the run of stockpile builds might have ended,

U.S. crude futures traded 0.2% lower at $64.45 a barrel, while the Brent contract fell 0.3% to $67.81.

Additionally, gold futures rose 1.3% to $1,750.05/oz, while EUR/USD traded 0.1% higher at 1.1985.