European stocks after China Q2 growth data

European stocks are expected to open in negative territory on Thursday, failing to get a boost from Chinese growth data showing a rebound in the economy.

London’s FTSE is seen 34 points lower at 6,272, Germany’s DAX is seen 123 points lower at 12,827, France’s CAC 40 is expected to open 45 points lower at 5,076 and Italy’s FTSE MIB down 142 points at 20,001, according to IG.

International investors will be digesting the latest growth data from China Thursday for further clues on how the world’s second-largest economy is recovering from the coronavirus pandemic.

China reported that the country’s GDP grew by 3.2% in the second quarter of this year, compared to a year ago — beating analysts’ expectations of 2.5% growth and rebounding from the first quarter’s contraction. Stocks in Asia Pacific were lower in Thursday afternoon trade following the data, nonetheless.

Meanwhile, the coronavirus pandemic continues to weigh on sentiment as the U.S. reports rising numbers of new coronavirus cases. White House health advisor Dr. Anthony Fauci is pushing back against Trump administration efforts to discredit him, calling the campaign “bizarre” and saying he will not step down. 

Fauci on Wednesday predicted on Wednesday that the U.S. will meet its goal of a coronavirus vaccine by the end of the year, telling Reuters in an interview that he feels “good about the projected timetable.”

In Europe, investors are awaiting the latest monetary policy decision from the European Central Bank although the bank is not expected to announce any policy changes Thursday.

European earnings come from Norwegian Air and Experian Thursday and a slew of car registration data from European countries will be watched to gauge the health of the car industry and new car sales. 

– CNBC.com staff contributed to this market report.

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