European markets head for higher open, brushing off inflation fears

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European stocks are expected to open higher on Thursday as investors appeared to brush off concerns about rampant inflation.

Global markets have been focused on rising U.S. bond yields and earnings this week. Inflation data is also center-stage; on Wednesday, data released by thehitting 5.4% with higher energy costs, resurgent demand and supply chain issues continuing to drive up consumer prices.

Inflation concerns have dominated markets around the world in recent months and investors are nervous over the U.S. Federal Reserve's trajectory for hiking interest rates and tightening its ultra-loose pandemic-era monetary policy. U.S. markets encountered another choppy trading session on Wednesday as investors remained cautious amid rising rates, with the Nasdaq dipping into correction territory.

This year's turbulence in tech stocks, set off by a spike in yields in the first week of January, continued Wednesday as the 10-year U.S. Treasury yield hit a high of 1.9%. It started the year at about 1.5%. The yield on the

 

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