In early European trades, pan-region Euro Stoxx 50 futures STXEc1 were up 0.18%, German DAX futures FDXc1 gained 0.26% and FTSE futures FFIc1 nudged 0.06% higher.
Investors are now turning their attention to U.S. labour market data ahead of Friday's closely watched nonfarm payrolls report. ADP figures on Wednesday showed private employers added 44,000 workers last month, slowing from 95,000 in June and coming in about 25,000 below expectations.
Economists polled by Reuters expect the government's report to show the U.S. economy added 80,000 jobs in July, after a 57,000 gain in June, with the unemployment rate forecast to hold steady at 4.2%.
Futures markets are pricing in about a 54% chance of a rate hike at the Federal Reserve's September meeting, down from 58% a day ago, according to the CME's FedWatch tool.
Federal Reserve Bank of San Francisco President Mary Daly, who is not currently a voting member of the Federal Open Market Committee, said on Wednesday she was “completely supportive” of the decision last week to hold interest rates steady.
The yield on benchmark U.S. 10-year notes US10YT=RR fell 0.83 basis points to 4.609%. In U.S. stock futures, Nasdaq 100 E-minis NQc1 were down 0.14%, whereas U.S. S&P 500 E-minis EScv1 were 0.17% higher and Dow E-minis YMc1 were up 0.21%.
Against the yen JPY=, the dollar was steady at 157.75 following last week's historic currency market intervention when Japan and the U.S. bought yen and pledged further action if necessary to support the currency.
The dollar/yen pair is likely to struggle to find a clear direction, with investors expected to stay largely on the sidelines ahead of Friday's U.S. job report, said Sony Financial Group senior analyst Juntaro Morimoto.
Spot gold XAU= rose 0.2% to $4,254.10 an ounce, advancing for a fourth session, while spot silver XAG= fell 0.38% to $61.84 an ounce. GOL/
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