LONDON — European stocks are expected to open higher on Wednesday as investors await the latest reading of U.S. inflation data.

United Kingdom’s FTSEIndex is opened 44 points higher at 7,489 in Germany DAX 97 points higher at 16,038, France’s CAC 40 up 53 points at 7,236 and Italy’s FTMIBData from IG shows a 130-point increase at 27533,

The global markets await Wednesday’s reading of U.S. Inflation to evaluate the current economic situation in the largest economy on the planet and determine the Fed’s next moves.

The Consumer Price Index is expected to show inflationAccording to Dow Jones, December saw a spike in prices. Economists predicted that December’s price increase would be 0.4% from December before spiking by 7% year-over-year.

Fed Chairman Jerome Powell said on Tuesday that the economy is both healthy enough and in need of tighter monetary policy, which likely will entail rate hikes, tapering of asset purchases and a smaller balance sheet. He did however not signal an acceleration in the policy change to what had been indicated by the central bank.

U.S. stock futures held steady in overnight trading Tuesday after a rally on Wall Street as investors bought the dip following a five-day sell-off in the S&P 500.

On Wednesday, Chinese markets rose, following gains in other countries. Asia-Pacific markets. The data released Wednesday in Asia included China’s producer and consumer price indexes for December. The index was up 1.5% in December compared to a year ago, according to Reuters — a drop from the 2.3% increase in November and lower than the 1.8% rise expected in a Reuters poll. 

Data front: The most recent figures of industrial production from the Euro zone are available.

— CNBC’s Weizhen Tan and Yun Li contributed to this report.