European markets anticipate a favorable start before the Fed's decision and the release of U.S. inflation data.

European markets anticipate a favorable start before the Fed's decision and the release of U.S. inflation data.
European markets anticipate a favorable start before the Fed's decision and the release of U.S. inflation data.

European stocks are predicted to rise on Wednesday prior to the release of the U.S. Federal Reserve decision and inflation data.

According to IG, the U.K.'s index is 29 points higher at 8,169, Germany's index is 36 points higher at 18,408, France's index is up 13 points at 7,803, and Italy's index is up 66 points at 33,946.

The U.S. Federal Reserve will announce its decision on Wednesday, following the release of the May inflation report.

The Fed is predicted to keep its overnight borrowing rate within a range of 5.25% to 5.5% while the market waits for updates on its economic projections. These projections could provide insight into the direction of policy. Recent strong jobs reports and persistent inflation have caused investors to worry about a prolonged higher-interest rate environment.

The consumer price index is expected to increase by 0.1% from April and 3.4% year-over-year.

Tuesday night, U.S. stock futures were close to being flat, while Asia-Pacific markets were mixed as investors evaluated inflation data from various Asian countries.

by Holly Ellyatt

Markets