British Prime Minister Keir Starmer’s reassurance that his finance chief is “going nowhere” appeared to have calmed the markets Thursday, as the nearly 10 basis point decline in 10-year gilt yields<\/a> indicates. Bond prices move inversely to yields.<\/p>\n Stock Chart IconStock chart icon Fixed income investors were concerned that the potential removal of Reeves meant Britain’s fiscal credibility could be called into question. Meaning, the U.K. would be spending more than previously expected.<\/p>\n The consequence of the parliamentary maneuvers means analysts are now cautioning that the U.K. will most likely have to raise taxes to avoid breaking its fiscal rules.<\/p>\n “Changes to the welfare reform plans<\/a> imply \u00a35 billion worth of a fiscal headroom hit. Combined with the possible OBR growth downgrades, recent policy decisions mean that in the absence of tax hikes or alternative spending cuts, fiscal rules would be broken in the autumn,” said Bruna Skarica, U.K. economist at Morgan Stanley. “We think tax hikes look most likely.”<\/p>\n \u2014 Ganesh Rao<\/p>\n European stocks open higher<\/p>\n We’re 15 minutes into Thursday’s trading session, and European shares are broadly higher.<\/p>\n The pan-European Stoxx 600<\/a> index was last seen up by 0.3%, with all sectors and major bourses in positive territory.<\/p>\n London’s FTSE 100<\/a> is leading regional gains with a jump of 0.4%.<\/p>\n \u2014 Chloe Taylor<\/p>\n U.S. lifts chip software restrictions on China<\/p>\n If you’re just joining us, you may not yet have seen the news that the Trump administration has lifted restrictions on chip design software sales in China.<\/p>\n That comes as part of the trade truce between the two countries, and was announced by semiconductor software companies\u00a0Synopsys<\/a>\u00a0and\u00a0Cadence<\/a> early on Thursday. Under the new requirements, leading chip designers will no longer need to seek government licenses to do business in China.<\/p>\n Read more here<\/a>.<\/p>\n \u2014 Domi Suskova, Dylan Butts<\/p>\n UK government borrowing costs fall<\/p>\n The yield on the U.K.’s benchmark 10-year government bonds \u2014 known as gilts \u2014 has edged slightly lower this morning, cooling from a spike seen in yesterday’s session.<\/p>\n The 10-year yield was last seen trading 1 basis point lower, at 7:18 a.m. in London. Longer and shorter-duration gilts all saw their yields move 2 basis points lower.<\/p>\n Stock Chart IconStock chart icon Yield on the U.K. 10-year government bond.<\/p>\n Bond prices and yields move in opposite directions.<\/p>\n Yields on gilts across the board surged on Wednesday, after questions were raised about the future of U.K. Finance Minister Rachel Reeves’ position in the current government.<\/p>\n \u2014 Chloe Taylor<\/p>\n Here are the opening calls<\/p>\n Alexander Spatari | Moment | Getty Images<\/p>\n Welcome to CNBC’s live blog covering all the action and business news in European financial markets on Thursday.<\/p>\n Futures data from IG suggests European markets will open higher, with London’s\u00a0FTSE 100<\/a>\u00a0looking set to open 0.3% higher at 8,799, Germany’s\u00a0DAX<\/a>\u00a00.2% higher at 23,836, France’s\u00a0CAC 40<\/a>\u00a0also up 0.2% at 7,757 and Italy’s\u00a0FTSE MIB<\/a> up 0.15% at 39,926.<\/p>\n The positive start in Europe comes after a more mixed day on Wednesday, particularly for the U.K. where bond prices, as well as the\u00a0FTSE<\/a>, tumbled sharply.<\/p>\n Those moves came after U.K. Finance Minister Rachel Reeves appeared visibly upset in Parliament on Wednesday as pressure mounted on the\u00a0government over welfare reforms<\/a>. The government said Reeves was dealing with a “personal matter” and Prime Minister Keir Starmer later said she has his full support.<\/p>\n U.S. stock futures<\/a> were little changed on Wednesday night as traders braced for June’s nonfarm payrolls data. Economists polled by Dow Jones expect that the economy added 110,000 jobs last month. That\u00a0compares with May’s gain<\/a>\u00a0of 139,000. Economists also see the unemployment rate inching higher.<\/p>\n In the Asia-Pacific region overnight<\/a>, Vietnamese stocks climbed to their highest in over three years as investors awaited further details on the U.S.-Vietnam trade agreement\u00a0that President Donald Trump<\/a>\u00a0announced Wednesday.<\/p>\n The U.S. is imposing a 20% tariff on goods imported from the Southeast Asian nation, while the latter will impose “ZERO Tariff,” Trump\u00a0said on Truth Social.<\/a>\u00a0<\/p>\n \u2014 Holly Ellyatt<\/p>\n What to keep an eye on <\/p>\n Jobseekers talk to recruiters during the New York Public Library’s annual Bronx Job Fair & Expo at the Bronx Library Center in the Bronx borough of New York, on Sept. 6, 2024.<\/p>\n Yuki Iwamura | Bloomberg | Getty Images<\/p>\n It’s a reasonably quiet day for data and earnings in Europe on Thursday, although Spain and Italy’s latest purchasing managers’ index data on business activity will be released.<\/p>\n More global market attention will be on the U.S. as June nonfarm payrolls data is released later in the U.S. trading session.<\/p>\n Economists polled by Dow Jones expect that the economy added 110,000 jobs last month. That\u00a0compares with May’s gain<\/a>\u00a0of 139,000. Economists also see the unemployment rate inching higher to 4.3%, up from 4.2% in May.<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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