A look at the day ahead in European and global markets from Rae

Wee

Flash Purchasing Managers Index (PMI) figures in the euro

zone, the UK and the United States take centre stage on

Thursday, and investors will be on the lookout for whether the

global growth narrative is showing signs of change.

Strategists at S&P Global Market Intelligence noted that

after the composite PMI in the United States came in below its

euro zone and UK counterparts last month, May's flash PMI

numbers will be eagerly awaited to "gauge whether global growth

momentum has shifted" from the U.S. to Europe.

Part of that shift could get some momentum on expectations

that the Bank of England (BoE) and the European Central

Bank(ECB) are likely to cut rates next month, while an easing

cycle in the United States is meanwhile still some time away.

Bets for an imminent rate cut by the Federal Reserve were

again pared after minutes of the central bank's latest policy

meeting came in more hawkish than expected, breathing new life

into the dollar and keeping U.S. Treasury yields elevated.

Patience on rates has reemerged as a theme across central

banks globally, with New Zealand's central bank governor Adrian

Orr on Thursday expressing disappointment over stubborn domestic

inflation.

In other news, Taiwan's military mobilised its forces and

said it was confident it could protect the island, after China

started two days of "punishment" drills around Taiwan on

Thursday in what it said was a response to "separatist acts".

That kept a lid on risk sentiment in Asia hours, though

Taiwan's stock market seemed to prefer the positive news

from AI darling Nvidia's ( NVDA ) revenue forecasts and surged

to a record high.

Key developments that could influence markets on Thursday:

- Euro zone flash composite PMI (May)

- UK flash composite PMI (May)

- U.S. flash composite PMI (May)