European futures come with falls of 0.8%. After the increases of the last session on both sides of the Atlantic, the renewed tensions between the United States and China are going to penalize the stock markets this Thursday. Donald Trump, President of the United States, has launched a series of accusations against Xi Jinping, President of China. Trump has said Xi is behind a "disinformation and propaganda attack on the United States and Europe."
"It all comes from above," Trump wrote in a series of tweets Wednesday night. Although Donald Trump has often blamed China for failing to prevent the pandemic, he has so far been careful to keep his relationship with Xi strong.
As for negative rate speculation in the UK, it peaked on Wednesday when Governor Andrew Bailey said that the Bank of England does not exclude the idea of reducing borrowing costs to below zero to tackle the economic impact of coronavirus. Keeping all options on the table "shouldn't come as a surprise," he added, noting that the policy had received "conflicting criticism" elsewhere. The comments came after Britain first sold below-average yield bonds and a report showed that inflation had dipped to the lowest level since 2016. The pound falls around 0.4 % against the dollar this morning.
The minutes of the April Fed meeting were published last night. The document showed that central bankers are very concerned about the state of the US economy, as well as the prospects. Fears of a second coronavirus wave were mentioned. Central bankers are also concerned about the health of the banking system as defaults and bankruptcies are likely to increase.
Some of the main European economies publish their May PMIs on Thursday. Likewise, weekly jobless claims in the United States are expected to be 2.4 million, which would be an improvement from the 2.98 million published in last week's announcement. In addition, the Philadelphia Federal Reserve Index is published.
Finally, the president, Jerome Powell, will speak at an event around 18:30 Spanish time.