This is CNBC’s live blog covering European markets.
European stocks are set to open in positive territory Thursday, buoyed by a relief rally for global markets following softer-than-expected U.S. inflation data.
The U.S. consumer price index rose 0.3% in April, below the 0.4% rise predicted by the Dow Jones, data released Wednesday showed. Consumer prices still grew 3.4% from a year ago, in line with market estimates, but the data has encouraged traders to believe that the U.S. Federal Reserve could begin to cut rates in the near future.
Asia-Pacific markets rose Thursday after Wall Street benchmarks closed at record highs overnight following the inflation data. U.S. stock futures were near flat overnight.
CNBC Pro: Citi names one under-the-radar stock to buy on an AI opportunity, giving it 22% upside
Citi recently named one under-the-radar company to buy on a “data and AI opportunity.”
Citi noted that the company said its total addressable market has increased three times, thanks to its artificial intelligence opportunity.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Inflation still ‘irritatingly high,’ says Bankrate’s Hamrick
With the consumer price index showing inflation slightly eased in April, the “lack of a nasty surprise” was welcome, unlike March’s disappointingly high readings, said Mark Hamrick, senior economist at Bankrate.
That said, interest rates will still remain higher for longer, he noted.
“With the 3.4% year-over-year headline increase and 3.6% in the core (excluding food and energy), these remain irritatingly high,” Hamrick said. “The status of the battle against inflation requires that interest rates remain elevated in the near-term.”
— Michelle Fox
CNBC Pro: India’s mid-cap stocks are in a ‘bubble’, says investor — and names the only stock he owns
India’s mid-cap stocks are in a “bubble” despite the country’s promising economic prospects, according to contrarian fund manager Jonathan Pines.
Pines, who runs Federated Hermes’ $3.1 billion Asia ex-Japan fund, believes there is a disconnect between the nation’s growth potential and the current stock market valuations.
The contrarian fund manager pointed to a mid-cap stock that’s risen by 240% despite sales and earnings declining.
However, he also named the only Indian stock he owns, saying “relative to everything else in India, that’s fantastic value”.
CNBC Pro subscribers can read more here.
— Ganesh Rao
European markets: Here are the opening calls
European markets are expected to open higher Thursday.
The U.K.’s FTSE 100 index is expected to open 22 points higher at 8,442, Germany’s DAX up 26 points at 18,896, France’s CAC 7 points higher at 8,244 and Italy’s FTSE MIB up 64 points at 35,091, according to data from IG.
Earnings are due from Swiss Re, Zurich Insurance, Siemens, Deutsche Telekom, BT and EasyJet, among others. There are no major data releases.
— Holly Ellyatt
Read More: European stocks set to react positively to soft U.S. inflation data, following