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LONDON — European stocks are expected to open higher on Wednesday as global markets await the latest monetary policy decision from the U.S. Federal Reserve.
The U.K.’s FTSE index is seen opening 15 points higher at 7,204, Germany’s DAX up 54 points at 13,353, France’s CAC 40 up 19 points at 5,971 and Italy’s FTSE MIB 120 points higher at 21,904, according to data from IG.
The positive open expected for regional markets on Wednesday comes after several trading sessions in Europe, Asia and the U.S. marked by volatility and nervousness as anticipation grows that the Fed, as well as other central banks, will resort to aggressive interest rate hikes to curb rampant inflation.
The Federal Open Market Committee is widely expected to announce at least a 50-basis-point hike on Wednesday, having already raised rates twice this year, though market bets for a 75-basis-point hike have risen in light of Friday’s inflation reading, when the U.S. consumer price index report released for May came in hotter than expected at 8.6% annually.
Ahead of the rate decision, shares in Asia-Pacific were mixed with markets also reacting to the latest Chinese economic data, including industrial production and retail sales for May. U.S. stock futures rose slightly in overnight trading late Tuesday as investors anxiously awaited the Fed’s decision.
There are no major earnings releases in Europe on Wednesday; France releases its inflation data for May.
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Read More: European markets head for positive open ahead of Fed rate decision