GLOBAL MARKETS: European Stocks Expected To Open Lower

LONDON (Dow Jones)--European stocks are expected to open lower Thursday, after Wall Street's gains were pared late in the day Wednesday and fresh concerns surfaced about the weakness of the global economy.

The Federal Reserve's Beige Book, released Wednesday, provided evidence that U.S. economic growth is tapering off, although stocks managed to close higher overall.

"The latest Beige Book clearly highlights the softer pace of the recovery," said Yelena Shulyatyeva, economist at BNP Paribas.

"Overall, the Beige Book indicated that the economy is recovering; however, at a very modest pace. While some sectors of the economy continue growing moderately, others, such as housing and bank lending, continue to face significant headwinds."

Ben Potter, market strategist at IG Markets, called London's FTSE 100 index to start down 14 points, or 0.3%, at 5416, Frankfurt's DAX down 27 points, or 0.4%, at 6137 and Paris's CAC-40 down 15, or 0.4%, at 3662.

However, Potter said any negative sentiment could be short-lived, particularly if the main Asian bourses finish with their bullish mood intact.

Asian stocks markets were mostly higher Thursday, although Chinese banks and property developers fell on persistent concerns that Beijing would roll out further tightening measures.

Japan's Nikkei Stock Average was up 0.8% and Australia's S&P/ASX 200 was 1.0% higher. South Korea's Kospi Composite was up 0.2% and Hong Kong's Hang Seng Index gained 0.6%. But China's Shanghai Composite Index fell 1.1%.

U.S. stocks rose Wednesday, with JPMorgan Chase, Alcoa and Boeing among the leaders. The Dow Jones Industrial Average rose 0.5% to 10,387.01, its fifth gain in six sessions. The Nasdaq Composite added 0.9% to 2228.87 and the Standard & Poor's 500 index gained 0.6% to 1098.87, with its financial and industrial sectors leading to the upside.

The gains came as stocks recovered some of the ground lost in Tuesday's slump. They remain well in the black for the month following better-than-expecting readings on the labor market and manufacturing last week.

There was little additional economic data driving the market Wednesday, although the Beige Book report from the U.S. central bank showed the U.S. economic recovery has continued, albeit "with widespread signs of a deceleration compared with preceding periods." Meanwhile, President Obama unveiled a mix of business tax cuts and infrastructure programs to boost the economy.

In the European foreign exchanges, the euro was a little weaker and the yen a tad firmer Thursday ahead of the weekly U.S. jobless claims data due later in the session. The median forecast in a Dow Jones poll of economists put claims at 470,000 for the week ending Sept. 4, barely changed from 472,000 the previous week.

By 0630 GMT, the euro was trading at $1.2686, down from $1.2721 late in New York trading Wednesday. The dollar bought Y83.54, down from Y83.88.

Spot gold was at $1255.15 per troy ounce, unchanged from New York. October Nymex crude oil futures were up nine cents at $74.76 per barrel. December bunds were up 0.14 at 131.39.

On the economic agenda, U.K. trade data are due at 0830 GMT and the Bank of England rate announcement is at 1100 GMT. The rate is expected to be held at its historical low of 0.5% again. U.S trade and the initial jobless claims data are due at 1230 GMT.