European stocks rally as global markets seek to rebound from losses

LONDON — European stocks are expected to open higher on Wednesday as global markets look to rebound from recent losses on the back of inflation concerns and Russia’s invasion of Ukraine.

The U.K.’s FTSE index is seen opening 34 points higher at 7,501, Germany’s DAX 103 points higher at 14,547, France’s CAC 40 up 51 points at 6,690 and Italy’s FTSE MIB 159 points higher at 24,113, according to data from IG.

The positive open expected for Europe comes after gains in major Asia-Pacific markets on Wednesday, as investors monitored oil prices and continued to assess the outlook for U.S. Federal Reserve monetary policy.

U.S. Federal Reserve Chairman Jerome Powell said earlier this week that the central bank is set to take tough action on inflation, with traders now betting the Fed will drive up interest rates even faster than expected just last week.

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European markets continue to monitor events in Ukraine closely. President Joe Biden is heading to Brussels on Wednesday and on Thursday will attend an emergency NATO summit, meet G-7 leaders, and address EU leaders at a meeting of the European Council.

Biden and his European counterparts will announce new sanctions against Russia and new measures to tighten existing sanctions during his trip to Brussels this week, national security adviser Jake Sullivan said Tuesday.

In the U.K., Chancellor Rishi Sunak will deliver his Spring Statement to Parliament on Thursday on the state of the British economy amid a cost of living crisis in the country and concerns over planned tax rises.

U.K. inflation data is due on Wednesday as well as the latest reading of euro zone consumer confidence.

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