European stocks modestly higher as U.S. rally lifts global sentiment

LONDON — European stocks are expected to open higher Wednesday, after a rally in U.S. stocks buoyed sentiment in Asia-Pacific markets overnight.

The U.K.’s FTSE index is expected to open 50 points higher at 7,340, Germany’s DAX 107 points higher at 13,419, France’s CAC 40 up 44 points at 6,247 and Italy’s FTSE MIB 174 points higher at 21,779, according to data from IG.

The higher open for European markets comes after choppy trade on Tuesday as the relief rally seen in the previous two sessions lost some momentum.

U.S. stocks rallied Tuesday, however, with the market resuming a bounce from last month’s lows, as traders bet on strong corporate earnings reports and wagered that markets have found a bottom.

Shares in the Asia-Pacific jumped Wednesday after the sharp bounce in U.S. stocks overnight.

Besides the positive lead from Wall Street, there were also reports that Russia and Ukraine are nearing a deal that would end the blockade on grain exports, and that Nord Stream 1 is likely to restart gas exports on schedule after maintenance is completed.

Back in Europe, the European Central Bank‘s policy meeting in Frankfurt on Thursday is at the forefront of investors’ minds, with policymakers having given advance notice of a first hike in 11 years. Still, this comes against a backdrop of slowing growth, the war in Ukraine and threats to energy supplies.

Earnings come from AkzoNobel and ASML, and the latest inflation data from the U.K. is due.

— CNBC’s Abigail Ng contributed to this story.

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