European stocks are heading for a higher open after strong gains in the U.S. lifted global sentiment. The pan-European Stoxx 600 index rose to its highest since March on Friday, after new data showed U.S. Consumer spending increased and factory activity accelerated, raising hopes that the world’s largest economy will continue to expand at a healthy pace after official figures last week showed gross domestic product had grown at its fastest pace in more than two years in the second quarter.
The European Stock Market is Expected to Open Higher on Wednesday
European stock markets are expected to open higher Wednesday after the U.S. stock market’s rally boosted sentiment in Asia-Pacific markets overnight. Forecasts say that the UK’s FTSE index is going to open at 50 points higher at 7,340, Germany’s DAX will be 107 points higher at 13,419, and France’s CAC 40 will be up 44 points at 6,247, and Italy’s FTSE MIB will be up 174 points at 21,779. The higher opening for the European markets comes after choppy trade on Tuesday as the relief rally seen in the previous two sessions lost some momentum.
U.S. Stocks Had a Big Jump Last Night
U.S. Stocks bounced Tuesday, breaking from the lows seen last month as traders bet on strong corporate earnings reports and wagered that markets have reached a bottom. Shares in the Asia-Pacific Climbed Wednesday morning following the huge U.S. Stock jump last night. Along with positive leads from Wall Street, there are also reports that Russia and Ukraine are nearing a deal to end the blockade on grain exports and that Nord Stream will resume gas exports on schedule. U.S. Stocks had a big jump last night.
European Central Bank
In the European Union, Frankfurt will be the epicenter of global economics when the European Central Bank holds a meeting, at which it has indicated that it will begin hiking its interest rate policy for the first time in 11 years. It is still against a backdrop of slowing growth, the conflict in Ukraine, and threats to the supply of energy.
Income came from AkzoNobel and ASML and new inflation data was released by the U.K.