LONDON — European stocks are expected to open higher on Wednesday as investors look ahead to the latest inflation reading.
The U.K.’s FTSE index is seen opening 24 points higher at 7,279, Germany’s DAX 58 points higher at 13,611, France’s CAC 40 up 40 points at 6,163 and Italy’s FTSE MIB up 85 points at 22,864, according to data from IG.
The higher open in Europe comes after choppy trading sessions in the region, and in markets further afield.
European stocks advanced on Tuesday as global markets rebounded from a broad sell-off in recent days, prompted mainly by concerns over inflation and rising interest rates — and the potential for a global recession.
On Tuesday, U.S. stocks seesawed as the major averages struggled to recover from three days of heavy selling that brought the S&P 500 to its lowest level in more than a year.
Investors are looking ahead to U.S. inflation data for April on Wednesday which is expected to come in slightly below March’s 8.5% and could signal that inflation has reached a peak.
Recent market volatility has been driven by investor concerns over rising interest rates and question marks over how aggressively the Federal Reserve will act to curb rising inflation. In addition, investors continue to monitor the ongoing conflict in Ukraine and lockdowns in China.
Overnight, shares in Asia-Pacific were mixed as investors watched for market reaction to the release of higher-than-expected Chinese inflation data for April. Meanwhile, U.S. stock futures were higher in early morning trading Wednesday ahead of the forthcoming U.S. inflation data.
German inflation data for April is also due Wednesday. Earnings from a wide range of companies are set to be released, including Alstom, Commerzbank, Continental, E.On, Siemens Energy, Thyssenkrupp and Tui.