European markets head for higher open as UK inflation misses estimate

Holly Ellyatt

European stocks are heading for a higher open Wednesday as regional markets continue to see-saw over the inflation outlook and trajectory of interest rates.

U.K. inflation came in at 2.3% on an annual basis in April, data released Wednesday showed. This was above the forecast of 2.1%, but much closer to the Bank of England’s 2% target than March’s reading of 3.2%.

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Britain’s inflation rate could be about to drop below the Bank of England’s 2% target.

Asia-Pacific markets traded mixed overnight while U.S. stock futures were little changed as investors looked ahead to the widely-anticipated release of Nvidia’s latest earnings report out Wednesday.

Traders will also be watching for minutes from the latest Federal Open Market Committee meeting.

UK inflation drops to 2.3% in April, nearing Bank of England’s target

U.K. inflation fell to 2.3% in April, the Office for National Statistics said on Wednesday, coming closer to the Bank of England’s target rate even while missing expectations.

The headline reading declined from 3.2% in March, but economists polled by Reuters had expected a steeper drop to 2.1%.

Core inflation, excluding energy, food, alcohol and tobacco, dipped to 3.9% in April from 4.2% in March.

— Jenni Reid

CNBC Pro: These 6 other chip stocks tend to move on Nvidia earnings

Six artificial intelligence-related stocks worldwide have consistently reacted positively to Nvidia’s quarterly results, according to CNBC Pro research.

The analysis comes ahead of Nvidia’s first-quarter earnings this year, which will be released Wednesday after the stock markets close.

Five six stocks have each risen between 6% and 33% in the past after Nvidia revealed bumper earnings.

— Ganesh Rao

CNBC Pro: Morgan Stanley’s Slimmon names tech stocks to buy at a ‘reasonable price’

Morgan Stanley Investment Management’s Andrew Slimmon has been consistently bullish on stocks — even during periods of volatility.

While he fears that a change in market conditions could cause “some sort of equity correction,” the senior portfolio manager believes it’s “clear sailing” for stocks for now.

“I think it will make sense to get a little more defensive going into the summer but it’s too early for that,” he said. “Stick with a balance of growth and value names.”

He names four stocks to buy.

— Weizhen Tan

European markets: Here are the opening calls

European markets are expected to open lower Tuesday.

The U.K.’s FTSE 100 index is expected to open 43 points lower at 8,381, Germany’s DAX down 60 points at 18,708, France’s CAC 33 points lower at 8,139 and Italy’s FTSE MIB down 140 points at 34,788, according to data from IG.

Earnings come from Kingfisher, Smiths Group, Fresnillo and Generali. Euro zone trade balance and construction data for March are due.

— Holly Ellyatt

Source : cnbc