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European Shares to Follow US, Asia Lower

European stocks were indicated to open lower as a fresh selloff in commodities hit stocks in the US and Asia.

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Sharon Lorimer

Concerns about lower growth in the U.S. and China, uncertainty about sovereign debt issues in the euro zone, and higher margin requirement in some commodities were behind the sale.

Late on Wednesday, the CME Group announced it will raise margin requirements on gasoline contracts, following steep increases in silver margin rates over the past few weeks.

Oil prices rebounded by more than $1 Thursday, trading higher on robust demand from Asia while silver and gold were trading higher too.

On the economic front, the International Monetary Fund will release its regional economic outlook for Europe at 8:30 London time.

Inflation worries have spread around the world and Wednesday's Bank of England inflation report has made some analysts say Bank Rate will increase. However, one economist said rates are unlikely to increase any time soon.

Consumer price inflation data will be released for some European countries before the market open, while the long-term interest rates statistics for the European Union will be released shortly after the open.

Industrial production data for the European Union will be released at 10:00 am London time and details about Irish inflation will come out at 11:00.

At 1 pm London time, the central bank of Norway will announce its monetary policy decision and some analysts expect it to increase the main interest rate by a quarter of a percentage point to 2.25 percent.