European markets head for higher open, brushing off inflation fears
LONDON — European stocks are expected to open higher on Thursday as investors appeared to brush off concerns about rampant inflation.
United Kingdom’s FTSEThe index will open up 15 points higher at 7,605, Germany. DAX 9 points higher at 15,818, France’s CAC 40 up 9 points at 7,182 and Italy’s FTSE MIBAccording to data from IG, the number of points increased by 44 at 27,415
This week, global markets were focused on the rising U.S. bonds yields and earnings. The center stage is inflation data. Data released Wednesday by the U.K. showed the inflation rate soared to a 30-year high in December5.4% would be the result of higher energy costs and resurgent consumer demand. Supply chain issues, as well as rising prices for consumers will continue to fuel inflation.
Global markets have been affected by rising inflation and investors worry about how the U.S. Federal Reserve will proceed in raising interest rates or tightening its already loose pandemic-era policy.
U.S. markets were hit again Wednesday by choppy trading sessions as investors tried to stay cautious in the face of rising interest rates. The Nasdaq was seen dipping into correction territory.
Tech stocks are experiencing turbulence this year, a result of a rise in yields the first week January. This continued Wednesday when the U.S. Treasury 10 Year yield reached a new high of 1.9%. The yield on the 10-year U.S. Treasury was at 1.5% when it began the year. The yield was 1.5%. 30-year Treasury bond fell 2 basis points to 2.167%. The yields are related ininversely to the prices.
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— CNBC’s Tanaya Macheel contributed to this market report.