LONDON — European stocks are expected to rally at the start of the new trading week, while global markets are closely watching U.S. inflation data released on Wednesday.
The UK FTSE index is expected to open 40 points higher at 8,209, the German DAX 114 points higher at 17,181, the French CAC 40 34 points higher at 7,301 and the Italian FTSE MIB 119 points higher at 32,000, according to IG data.
European markets will follow the example of their counterparts in Asia-Pacific, where markets were mostly positive overnight. The rally comes after global equity markets went up and down last week, followed by sharp sell-offs that then rebounded sharply.
U.S. stock futures fell as investors awaited key inflation data due later this week. Major Wall Street indexes rose on Friday, with the indices rebounding sharply from last week’s market slump.
Investors are hoping for a better sense of the state of the economy this week after recent concerns about a slowing labor market spooked traders and rattled the market.
The focus will be on the US producer price index report for July, released on Tuesday, followed by the country’s latest consumer price index data on Wednesday, with investors looking for signs of stabilization in price growth.
The results for Europe will come from Hannover Re on Monday. There are no important data releases.
