European stocks are seen opening higher on Wednesday even as a cautious undertone may prevail ahead of U.S. consumer price inflation data for July due out later in the day.
Economists currently expect consumer prices to climb by 0.5 percent in July after advancing by 0.9 percent in June. The annual rate of consumer price growth is expected to slow to 5.3 percent from 5.4 percent.
A high reading could influence the Fed’s timeline to taper monetary stimulus, though the next Fed meeting is not scheduled until September.
The U.S. Labor Department is scheduled to release a separate report on producer price inflation for July on Thursday.
Asian markets were mostly higher despite fears about the spread of the coronavirus while the dollar and U.S. Treasury yields extended gains, spurred by tapering talk.
Gold held steady after Chicago Fed president Charles Evans said the current surge in prices shouldn’t push the Fed to tighten monetary policy prematurely.
Oil edged lower after rising sharply overnight on signs of rising fuel demand in the United States.
Destatis is slated to issue Germany’s final consumer prices for July later in the day. According to preliminary estimate, inflation based on the harmonized index of consumer prices, which is meant for EU comparison, advanced to 3.1 percent from 2.1 percent in June.
U.S. stocks ended mixed overnight as President Joe Biden’s $1 trillion infrastructure bill secured a majority vote in the Senate. The package now heads to the House, where it faces an uncertain future.
The Dow rose half a percent and the S&P 500 inched up marginally to reach new record highs, while the tech-heavy Nasdaq Composite index dropped half a percent.
European stocks hit record highs on Tuesday, extending gains for a seventh straight day as strong earnings and hopes for economic recovery offset investor concerns about a surge in the delta variant of the coronavirus.
The pan-European Stoxx 600 gained 0.4 percent. The German DAX edged up 0.2 percent, France’s CAC 40 index inched up 0.1 percent and the U.K.’s FTSE 100 rose 0.4 percent.
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