The risk sentiment remained buoyed amid a rebound in the local equities and Treasury yields and US equity futures, despite the Chinese central bank having fixed the USD/CNY central rate above the key 7.00 level for the first time since 2008.

Markets sentiment in the session ahead is expected to be mainly driven by the increased risks of a trade and currency war, especially with a data-sparse calendar on both sides of Atlantic. The focus remains on the European Central Bank economic bulletin due at 08:00 GMT, which usually follows its July meeting.

In the NA session, the US weekly Jobless Claims data will be released at 12:30 GMT while the US Wholesale Inventories will drop in at 14:00 GMT. Markets look forward to Friday’s key Japanese GDP and Chinese CPI data for fresh trading impetus.

Oil is trading near $52.65 in Thursday’s European session supported by China trade balance and headlines from the Middle East.

Gold consolidates recent strong gains to multi-year tops, around $1,500 mark as a slight improvement in the global risk sentiment capped further gains.