Stocks, news, inflation data and earnings

LONDON — European stocks are set to open higher on Thursday as investors digest lower-than-expected inflation figures in the U.S. and Britain

The United Kingdom FTSE The index is expected to open 50 points higher at 8,300, Germany’s DAX rose by 94 to 17,973, France’s CAC40 rose 38 points to 7,361, according to data from IG. Italy's FTSE MIB is closed on Thursday.

European markets closed higher on Wednesday as investors assessed key inflation data from the US and UK. Inflation in the UK rose to 2.2 percent in July, slightly below expectations but again above the Bank of England's target of 2 percent, according to data from the Office for National Statistics.

Later in the day, stocks in the U.S. rose after the U.S. consumer price index reflected a slowing annual inflation rate of 2.9%, the lowest since 2021.

The U.S. data – along with a key indicator of wholesale inflation released on Tuesday that rose less than expected – have reassured investors that a soft economic landing is back in sight.

Investors are now checking whether the numbers indicate a 25 or 50 basis point rate cut by the US Federal Reserve in September. According to CME's FedWatch tool, market prices indicate a 58.5 percent probability for the first rate cut and a 41.5 percent probability for the second rate cut.

U.S. stock futures climbed slightly higher on Wednesday evening, while markets in the Asia-Pacific region broadly gained overnight after Japanese gross domestic product data beat expectations.

As for data and earnings in Europe, UK GDP data is due on Thursday and earnings come from Adyen.