European stocks set for higher open as markets anticipate first ECB rate cut

European stocks are expected to open higher on Thursday, with traders anticipating that the European Central Bank will cut borrowing costs for the euro area for the first time since September 2019.

The U.K.’s FTSE index is seen opening 27 points higher at 8,270, Germany’s DAX 75 points higher at 18,642, France’s CAC 40 up 28 points at 8,032 and Italy’s FTSE MIB 139 points higher at 34,711, according to data from IG.

Although the ECB is widely expected to cut interest rates when policymakers meet, investors will be watching closely to see whether a slightly higher-than-expected euro zone inflation print released last Friday affects the central bank’s decision-making.

In any case, the ECB meeting has fired up markets elsewhere; Asia-Pacific stocks rose overnight as investors awaited the central bank’s rate cut, while softer U.S. labor market data on Wednesday fueled hopes that the U.S. Federal Reserve might follow suit, boosting market sentiment.

U.S. stock futures were little changed in overnight trading after the S&P 500 notched a new record closing high thanks to a rally in artificial intelligence chip darling Nvidia.