European Stocks Set for Higher Open as Global Markets Rebound — Investors Eye Year-End Rally

European markets are poised for a positive start on Wednesday, lifted by renewed optimism across global trading floors. After a shaky beginning to the week, sentiment appears to be improving as major regions show signs of recovery. Early data from IG indicates that the U.K.’s FTSE 100 is set to open 0.11% higher, Germany’s DAX up 0.16%, France’s CAC 40 climbing 0.14%, and Italy’s FTSE MIB edging up 0.18%.

This anticipated upward momentum mirrors a broader rebound in global markets. U.S. indexes finished Tuesday on a strong note after tech giants — including Nvidia — pushed higher. Meanwhile, bitcoin also regained ground after experiencing its worst single-day drop since March. Across Asia-Pacific, markets traded largely in the green overnight, contributing to a more upbeat global tone.

Investors are now weighing the possibility of a late-year rally, a trend historically common in December for U.S. equities. After a difficult November marked by profit-taking and cooling valuations for major tech names, traders are hopeful that improving macroeconomic signals could help revive momentum heading into the holiday season.

Corporate updates are also shaping the mood in Europe. German fashion house Hugo Boss revised its outlook as it undergoes a strategic transformation aimed at boosting profitability. The company expects EBIT to reach between €300 million and €350 million by 2026, despite anticipating a short-term dip in sales before a projected recovery in 2027.

Looking ahead, investors in the U.S. are focused on the Federal Reserve’s interest rate decision scheduled for December 10. Markets are currently pricing in an 89% chance of a rate cut — a significant jump from mid-November expectations, according to the CME FedWatch Tool. In Europe, traders are also awaiting fresh PMI data and earnings results from Inditex, which could further influence regional trading sentiment.

source: cnbc