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European markets are moving towards higher openness, which removes fears of inflation

LONDON - European equities are expected to open higher on Thursday as investors appeared to remove concerns about violent inflation.

The UK FTSE index is expected to open 15 points higher at 7,605, Germany's DAX 9 points higher at 15,818, France's CAC 40 up 9 points at 7,182 and Italy's FTSE MIB up 44 points at 27,415 according to data from IG.

Global markets this week have been focused on rising US bond yields and earnings. Inflation data is also at the center; on Wednesday, data released by the UK showed that inflation rose to a 30-year high in December, hitting 5.4% with higher energy costs, resurgent demand and supply chain problems that continued to drive up consumer prices.

Inflation concerns have dominated markets around the world in recent months, and investors are nervous about the US Federal Reserve's path to raising interest rates and tightening its ultra-monetary policy from the pandemic.

US markets encountered another choppy trading session on Wednesday as investors remained cautious amid rising prices as the Nasdaq plunged into the correction area.

This year's turbulence in tech stocks, triggered by a rise in interest rates in the first week of January, continued on Wednesday as 10-year US government yields peaked at 1.9%. It started the year at around 1.5%. The yield on the 30-year government bond fell 2 basis points to 2.167%. Dividends move inversely to prices.

Futures on US equities changed slightly Wednesday night, while markets in the Asia-Pacific region were mixed on Thursday as China lowered its key lending rates.

Earnings in Europe come from AB Foods, Deliveroo and Bankinter, and data releases include France's consumer climate data for January and German producer prices for December.

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- CNBC's Tanaya Macheel contributed to this market report.


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