European markets head for positive open as global chip stocks stabilize

Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks are expected to open higher Wednesday, reversing negative sentiment seen in the previous trading session.

The U.K.’s FTSE index is seen opening 8 points higher at 8,256, Germany’s DAX up 70 points at 18,226, France’s CAC 40 up 40 points at 7,692 and Italy’s FTSE MIB 75 points higher at 33,980, according to data from IG.

The positive open anticipated for European markets comes after rocky trade in the region, and elsewhere globally, after a tech-driven selloff — although volatility in the sector appeared to stabilize after chipmaking giant Nvidia rallied Tuesday.

U.S. stock futures hovered near the flatline Tuesday evening after the S&P 500 rebounded from the rough start to the week, while Asia-Pacific markets were mixed overnight as Australia’s inflation rate climbed for a third straight month, while semiconductor and related stocks jumped.

Wall Street is likely to shift its attention toward fresh U.S. inflation data on Friday with the release of May’s personal consumption expenditures price index, the U.S. Federal Reserve’s preferred inflation gauge.

Data releases in Europe on Wednesday include Germany’s GFK consumer survey for July and European consumer confidence data for June. Earnings are set to come from Mulberry.

Source : cnbc