Morning Bid: Relief as Japan debt auction sails through

A look at the day ahead in European and global markets from Gregor Stuart HunterJittery bond markets found reasons for calm as members of the Federal Reserve sounded a supportive note for rate cuts and Japan's latest super-long debt auction passed without incident.

Markets stabilised after an auction of 30-year Japanese government bonds on Thursday met with a bid-to-cover ratio of 3.31, after the yield on similarly-dated debt rose to a record. Though demand was the lowest since June, the takeup was sufficient to stop a fresh wave of anxiety gripping the bond market for now.

U.S. stock futures clung to gains of 0.1% afterwards, with investors in Asia taking a boost to sentiment after Federal Reserve officials, including Governor Christopher Waller, reiterated support for rate cuts in the months ahead.

President Donald Trump's pick to fill an open seat on the Federal Reserve Board, Stephen Miran, also said he would work to preserve the central bank's independence ahead of a Senate confirmation hearing later today.

Traders are now pricing in a 96.6% probability of a cut to interest rates at the Fed's September meeting, according to the CME Group's FedWatch tool.

The yield on benchmark 10-year Treasury notes rose to 4.2187% compared with its U.S. close of 4.211% on Wednesday, while the U.S. dollar index clawed back 0.1% to 98.231.

In early European trades, pan-region futures were flat, German DAX futures slipped 0.1% and FTSE futures were up 0.1%.

But MSCI's broadest index of Asia-Pacific shares outside Japan gave up early gains and was last down 0.2%, dragged lower by losses in China.

The blue-chip CSI 300 fell 2.5% and was on track for its biggest one-day selloff since April after a Bloomberg News report that financial regulators are preparing cooling measures for the market.

That sent the SSE STAR 50 Index skidding 5.4% lower, as GPU chip designer Cambricon Technologies, a standout of the recent rally, fell as much as 13.2%.

Meanwhile, Indian shares jumped on the open after the government slashed levies on several goods to fire up consumption and counteract U.S. tariffs, with the BSE Sensex up 1.1% as markets opened.

In commodities markets, Brent crude dipped 0.7% to $67.16 a barrel.

Precious metal prices fell, with spot gold off 0.8% at $3,531.63 per ounce after hitting a record on Wednesday.

Key developments that could influence markets on Thursday:

Earnings: Broadcom, CVC Capital Partners, Lululemon Athletica

Euro zone economic data: Retail sales for July

Debt auctions:

France: 10-year, 17-year and 31-year government debt auctions

United Kingdom: 20-year government debt auction

(Reporting by Gregor Stuart Hunter; Editing by Muralikumar Anantharaman)