- August 15, 2024
- By: Admin1_blog
- EU Market, Indices
Holly Ellyatt@HollyEllyatt
LONDON — European stocks are expected to open higher Thursday as investors digest cooler-than-expected inflation readings in the U.S and U.K.
The U.K.’s FTSE index is expected to open 50 points higher at 8,300, Germany’s DAX up 94 at 17,973, France’s CAC 40 up 38 points at 7,361, according to data from IG. Italy’s FTSE MIB is closed Thursday.
European markets closed higher Wednesday as investors assessed key inflation prints from the U.S. and U.K. U.K. inflation rose to 2.2% in July, coming in slightly below expectations but inching back above the Bank of England’s 2% target, data from the Office for National Statistics showed.
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Later in the day stateside, stocks climbed after the U.S. consumer price index reflected a slowing annual inflation rate of 2.9%, the lowest since 2021.
The U.S. data — coupled with a key measure of wholesale inflation released Tuesday that rose less than expected — has reassured investors that an economic soft landing is back on the table.
Investors are now assessing whether the prints point to an interest rate cut of 25 or 50 basis points by the U.S. Federal Reserve in September. Market pricing suggests a 58.5% probability of the former and a 41.5% probability of the latter, according to CME’s FedWatch tool.
U.S. stock futures climbed slightly higher Wednesday evening, while Asia-Pacific markets largely rose overnight after Japan’s gross domestic product data beat expectations.
On the data and earnings front in Europe Thursday, U.K. GDP data is due and earnings come from Adyen.
Source : cnbc
