European markets head for positive open ahead of Fed decision, U.S. inflation data

Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks are expected to open higher Wednesday ahead of the latest U.S. Federal Reserve decision and inflation reading.

The U.K.’s FTSE index is seen 29 points higher at 8,169, Germany’s DAX 36 points higher at 18,408, France’s CAC 40 up 13 points at 7,803 and Italy’s FTSE MIB up 66 points at 33,946, according to IG.

The U.S. Federal Reserve’s decision on Wednesday stateside will come hours after the country’s May inflation report.

The central bank is expected to maintain its benchmark overnight borrowing rate in a range between 5.25% and 5.5%, the market will be watching for updates to the Fed’s economic projections, which could clarify the path for policy. Investors have grown increasingly concerned that the recent strong jobs report and sticky inflation support a higher-for-longer interest rate environment.

The latest consumer price index print, a broad measure of goods and services costs, is forecast to show just a 0.1% increase from April and a 3.4% rise on a year-over-year basis.

U.S. stock futures hovered near the flatline Tuesday night, while Asia-Pacific markets were mixed as investors assessed inflation data from around Asia.

Source : cnbc