European markets are set to rally at the open, with U.S. inflation data in focus this week

Holly Ellyatt@HollyEllyatt

LONDON — European stocks are expected to rally at the start of the new trading week, with global markets keeping a close eye on U.S. inflation data out Wednesday.

The U.K.’s FTSE index is seen opening 40 points higher at 8,209, Germany’s DAX up 114 points at 17,181, France’s CAC 40 up 34 points at 7,301 and Italy’s FTSE MIB up 119 points at 32,000, according to data from IG.

European markets are set to follow in the footsteps of their counterparts in Asia-Pacific, where markets were mostly higher overnight. The rally comes after global stock markets see-sawed last week with steep sell-offs followed by a sharp rebound.

U.S. stock futures were lower as investors awaited key inflation data due later this week. Major Wall Street averages rose Friday, with the indexes making a sharp recovery from last week’s market rout.

Investors this week are hoping to get a better sense of the state of the economy after recent fears of a job market slowdown spooked traders and rocked the market.

In focus is the U.S. producer price index report for July, out Tuesday, followed by the country’s latest consumer price index data on Wednesday, with investors looking for signs that price growth is stabilizing.

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Earnings in Europe come from Hannover Re on Monday. There are no major data releases.

Source : cnbc