European stocks are poised to respond positively to subdued U.S. inflation figures, mirroring the upward trend seen in global markets.

European stocks are anticipated to open higher on Thursday, driven by a relief rally in global markets after the release of softer-than-expected U.S. inflation data. This positive sentiment is expected to influence trading as investors respond favorably to the news.

European stock markets are poised for a positive opening on Thursday, riding on the wave of relief sweeping global markets subsequent to the release of softer-than-expected U.S. inflation data. 

The U.S. consumer price index for April showed a 0.3% increase, falling slightly short of the 0.4% forecasted by the Dow Jones. Despite this, consumer prices still experienced a year-on-year growth of 3.4%, aligning with market expectations. 

However, this data has instilled confidence among traders that the U.S. Federal Reserve might consider implementing interest rate cuts in the foreseeable future.

The optimistic sentiment spread across Asia-Pacific markets on Thursday, propelled by the record highs achieved by Wall Street benchmarks following the release of the inflation figures. This surge in optimism was reflected in the near-flat performance of U.S. stock futures overnight. 

With investors interpreting the softer inflation data as a potential signal for future monetary policy adjustments by the Federal Reserve, markets across regions have responded with renewed enthusiasm, driving European stocks towards an upbeat opening on Thursday. 

This scenario underscores the interconnectedness of global financial markets and how pivotal economic data releases, such as U.S. inflation figures, can have far-reaching implications, influencing trading sentiments and market dynamics across continents.

Source: CNBC