LONDON — European stocks are expected to open higher on Thursday as investors appeared to brush off concerns about rampant inflation.
The U.K.’s FTSE index is expected to open 15 points higher at 7,605, Germany’s DAX 9 points higher at 15,818, France’s CAC 40 up 9 points at 7,182 and Italy’s FTSE MIB up 44 points at 27,415, according to data from IG.
Global markets have been focused on rising U.S. bond yields and earnings this week. Inflation data is also center-stage; on Wednesday, data released by the U.K. showed the inflation rate soared to a 30-year high in December hitting 5.4% with higher energy costs, resurgent demand and supply chain issues continuing to drive up consumer prices.
Inflation concerns have dominated markets around the world in recent months and investors are nervous over the U.S. Federal Reserve’s trajectory for hiking interest rates and tightening its ultra-loose pandemic-era monetary policy.
U.S. markets encountered another choppy trading session on Wednesday as investors remained cautious amid rising rates, with the Nasdaq dipping into correction territory.
This year’s turbulence in tech stocks, set off by a spike in yields in the first week of January, continued Wednesday as the 10-year U.S. Treasury yield hit a high of 1.9%. It started the year at about 1.5%. The yield on the 30-year Treasury bond fell 2 basis points to 2.167%. Yields move inversely to prices.
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— CNBC’s Tanaya Macheel contributed to this market report.