European stocks head for higher open as markets look ahead to U.S. inflation data

Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks are expected to open higher Thursday as global markets look ahead to the next U.S. inflation reading.

The U.K.’s FTSE index is seen opening 20 points higher at 8,210, Germany’s DAX up 37 points at 18,451, France’s CAC 40 up 7 points at 7,585 and Italy’s FTSE MIB up 45 points at 34,512, according to data from IG.

Thursday’s inflation report could cement expectations that the U.S. Federal Reserve will cut interest rates in the coming months. Recent economic releases have suggested that inflation and economic growth are both cooling, including last week’s report that unemployment in June ticked up to 4.1%.

The consumer price index, or CPI, report for June is due out at 8:30 a.m. ET.

Overnight, Japan’s Nikkei 225 crossed the 42,000 mark for the first time amid a broader rise in Asia-Pacific markets after U.S. Big Tech rallied overnight on optimism over Fed rate cuts. U.S. stock futures were little changed Wednesday night after both the S&P 500 and Nasdaq Composite closed at new all-time highs.

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On the data front, U.K. gross domestic product figures for May are due. There are no major earnings.

Source : cnbc