European markets head for positive open, tracking gains elsewhere

  • European stocks are expected to open higher on Wednesday, tracking gains seen in Asia-Pacific markets overnight and Wall Street on Tuesday.
  • London's FTSE is seen opening 10 points higher at 7,175, Germany's DAX 8 points higher at 15,785, France's CAC 40 up 3 points at 6,828 and Italy's FTSE MIB 30 points higher at 26,202, according to IG.

LONDON — European stocks are expected to open higher on Wednesday, tracking gains seen in Asia-Pacific markets overnight and Wall Street on Tuesday.

London's FTSE is seen opening 10 points higher at 7,175, Germany's DAX 8 points higher at 15,785, France's CAC 40 up 3 points at 6,828 and Italy's FTSE MIB 30 points higher at 26,202, according to IG.

The positive open expected for Europe comes amid buoyant trading in Asia-Pacific markets overnight following Wall Street moves on Tuesday.

The Dow and S&P 500 closed at record highs following the U.S. Senate's passing of the $1 trillion infrastructure bill, which earmarks $550 billion in new spending for areas including transportation and the electric grid.

The Senate's infrastructure plan is expected to help give the economy a boost as peak growth slows following the reopening from the pandemic. U.S. stock index futures were flat early on Wednesday.

International investors will be keeping an eye on U.S. data releases on Wednesday with July's Consumer Price Index reading set to be released.

Economists surveyed by Dow Jones expect the index to have risen 0.5% last month, or 5.3% year over year. In June prices jumped 0.9%, which was the biggest monthly increase since August 2008. The data could influence the U.S. Federal Reserve's decision-making over interest rates.

Earnings releases in Europe come from E.On, Thyssenkrupp, Uniper, ABN AMRO, Prudential, Deliveroo and Admiral Group. Data releases include final inflation figures for Germany and Italy in July.

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— CNBC's Weizhen Tan and Pippa Stevens contributed to this report.

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