European Stocks Head for Higher Open

European equity markets were set for a higher open on Thursday as subdued US inflation data reduced expectations for a Federal Reserve interest rate hike in September. In Europe, data showed the UK economy expanded 0.4% quarter-on-quarter in the three months to June, slowing from 0.5% growth in Q1 but matching market expectations. Investors will also turn their attention to Eurozone industrial production for June and Spain’s final inflation figures for July. In corporate news, Danish shipping giant Maersk raised its full-year underlying Ebitda guidance to a level above analyst expectations. Other European companies scheduled to report earnings include E.On, RWE, Antofagasta, Birkenstock and Nomad Foods. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.4%.

Both the STOXX 50 and STOXX 600 gaining 0.1% on Wednesday after a lacklustre opening. The move followed gains on Wall Street after an in-line US CPI report reinforced expectations that the Fed is unlikely to need to raise interest rates in the near term. However, uncertainty surrounding the situation in the Middle East continued to weigh on sentiment and limited gains. Meanwhile, the earnings season is drawing to a close, although several companies continued to report results. ABN AMRO surged more than 5% after beating expectations across the board, while Vestas jumped almost 20% after reporting higher revenue. The tech sector was among the top performers, benefiting from a broader global tech rally after CoreWeave reported better-than-expected sales growth. ASML Holding rose 2.1%, Infineon Technologies gained 3.7%, Siemens Energy advanced 4%. Luxury stocks, meanwhile, came under pressure, with LVMH falling 2.5% Hermes declining 1.5%, and Kering dropping 2.9%.

Both the STOXX 50 and STOXX 600 hovered around the flatline near record levels on Wednesday, as traders refrained from making major bets ahead of the US CPI report, which is expected to provide fresh clues on price pressures and help shape expectations for the Fed's next steps. Rising oil prices also kept sentiment cautious. Meanwhile, the earnings season is drawing to a close, although several companies continued to report results. ABN AMRO surged more than 5% after beating market expectations across the board, while Vestas jumped more than 18% after reporting higher revenue. The tech sector was among the top performers, benefiting from a broader global tech rally after CoreWeave reported better-than-expected sales growth. ASML Holding rose 2%, Infineon Technologies gained 1.6%, Siemens Energy advanced 3.5%, and Rheinmetall climbed 1.3%. Luxury stocks, meanwhile, came under pressure, with LVMH falling 1.8%, Hermes declining 1.5%, and Kering dropping 2.9%.