European stock markets are expected to open higher on Wednesday, after a sharp rise in American indexes on Tuesday, while investors continue to bet on a reduction in its interest rates by the Federal Reserve (Fed) in September.

Around 7:30am, the CAC 40 futures contract rose by 0.3%, according to data from broker IG.

There are no corporate publications on the agenda.

This Wednesday, futures contracts on European equity markets rose, while investors await the interventions of several Fed officials during the day.

According to data from broker IG, the DAX 40 futures contract in Frankfurt gained 0.5%, while that on the FTSE 100 in London grew by 0.2%.

The New York Stock Exchange closed sharply higher on Tuesday, welcoming the absence of a significant acceleration in inflation in July in the United States, which could encourage the Fed to lower rates.

The Dow Jones Index rose 1.1% to 44,458.61 points, as did the S&P 500 to 6,445.76 points. The Nasdaq Composite, rich in technology stocks, ended up 1.4% to 21,681.90 points

According to the Consumer Price Index (CPI) published on Tuesday, the inflation rate in the United States remained unchanged in July, at 2.7% over one year, while economists expected a slight acceleration to 2.8% over one year, while economists expected a slight acceleration to 2.8%. Core inflation, which excludes food and energy, however, stood at 3.1% over 12 months, compared to 2.9% in June. These figures, which remain above the Fed's 2% inflation target, do not seem to call into question the hypothesis of a rate cut in September.
Operators estimate that 94% are likely to drop by a quarter point next month, compared to 86% on Monday, according to the CME FedWatch tool

Investors were encouraged by some aspects of these statistics. In particular, goods inflation was lower than expected, which suggests a low impact of tariffs. Inflation in services has been high, but this is in part due to a rise in air transport prices, which are quite volatile.

According to Jack Ablin of Cresset Capital, “for the Fed, the lack of a more alarming acceleration in prices removes an obstacle to reducing rates due to growing concerns about a slowdown in the labor market.” For the latter, tariff increases are visible in the prices of some goods, but less dramatically than many economists feared

In Asia, the Nikkei index on the Tokyo Stock Exchange rose 1.2% on Wednesday at the end of trading. The Shanghai Composite Index gained 0.4%, while the Hang Seng on the Hong Kong Stock Exchange rose by 1.9%.

The stock rate at two years was almost stable at 3.75%. The 10-year US Treasury bond rate lost 0.6 basis points, to 4.29%, around 7:30.

The greenback gained 0.1% against the Japanese currency, at 147.99 yen. The euro was stable, at 1.1678 dollars, around 7:30.

This morning, while the reduced likelihood of stronger sanctions against Russia could weigh on the market, oil prices are not changing much. Carsten Fritsch, of Commerzbank Research, believes that the meeting scheduled for Friday between Donald Trump and Russian President Vladimir Putin has raised hopes for a ceasefire in Ukraine and even for a possible relaxation of sanctions against Moscow

In addition, the US president is unlikely to impose secondary tariffs on countries other than India for their purchases of Russian oil before meeting with Vladimir Putin, adds the commodity analyst.

The September contract for soft light crude (WTI) listed on Nymex rose by 1 cent to $63.18 per barrel. Around 7:30am, the October North Sea Brent contract listed in London gained 5 cents, or 0.1%, to $66.17