European stocks set for higher open as investors focus on next U.S. inflation data

LONDON — European stocks are expected to open higher on Tuesday as investors look ahead to the next U.S. inflation reading on Wednesday.

The U.K.’s FTSE index is seen opening 31 points higher at 7,464, Germany’s DAX 78 points higher at 15,886, France’s CAC 40 up 44 points at 7,174 and Italy’s FTSE MIB higher by 114 points at 27,300, according to data from IG.

Global markets are focused this week on the latest U.S. inflation data due out this week; the latest U.S. consumer price index is set for release Wednesday and the producer price index is slated for Thursday.

Consumer prices in Europe and the U.S. jumped in recent months. Last Friday, inflation in the euro zone hit a new record high in December and came in at 5% compared with the same month the previous year.

Asia-Pacific markets were mixed across the board on Tuesday as investors remain concerned about inflation, as well as likely policy tightening from central banks like the U.S. Federal Reserve.

Global investors will be looking for any clues from Fed officials as to the timing of interest rate hikes too; on Tuesday Federal Reserve Chairman Jerome Powell’s confirmation hearing will take place. Kansas City Fed President Esther George is also scheduled to speak about on economic policy, as is St. Louis Fed president James Bullard later in the day.

U.S. futures were flat overnight after the major averages extended declines on Monday, except the Nasdaq which managed to snap a four-day losing streak.

Data releases include the latest reading of the U.K.’s GDP in the three months to November, and U.K. industrial and manufacturing output for November as well as Greek unemployment data for the same month.

— CNBC’s Tanaya Macheel contributed to this market report.