European markets opened on a positive note on Wednesday as traders awaited the latest U.S. inflation data, which will inform the Federal Reserve’s decision to cut interest rates.
British FTSE 100 The German stock index is expected to open 25 points higher at 8,221 German DAX Index France rose 20 points to 20,279 CAC Up 15 points to 7,439 points, Italy FTSE MIB It rose 51 points to 35,218, according to IG data.
Transaction update settings from Experian and Hayes On Wednesday, the key data releases were the UK’s latest inflation data and Germany’s full-year gross domestic product.
The focus for global markets on Wednesday will be the U.S. consumer inflation index, due out at 8:30 a.m. ET. Economists surveyed by Dow Jones expect overall CPI to rise 0.3% quarter-to-quarter and 2.9% higher than the previous 12 months.
Data will follow December Wholesale Inflation Reportthe number of which is less than expected. Producer prices rose just 0.2%, missing the Dow Jones consensus estimate of a 0.4% gain.
Both reports will inform the Federal Reserve’s interest rate policy when it meets later this month. Federal funds futures trading suggests the Fed is almost certain to keep rates on hold at the end of its two-day meeting later this month. According to market pricing, the possibility of maintaining the current target range of 4.25%-4.5% in March is 97% CME Group’s Federal Reserve Watch tool.
Global bond yields continue to rise, with traders expecting a slower pace of rate cuts this yearthere are both signs of economic strength and signs of potential weakness ahead. Last week’s jobs data showed nonfarm payrolls grew much faster than expected in December, but President-elect Trump has said he will enact tariff policies after taking office that he expects will stoke inflation.
U.S. investors will also be watching earnings from major banks on Wednesday: JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo Fourth-quarter results will be announced. Morgan Stanley and Bank of America The report is due to be released on Thursday.
