BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening higher on Wednesday as softer oil prices eased inflation concerns and cloud-computing company CoreWeave said it would become profitable on an adjusted basis in the first half of 2028, easing fears about its debt-laden business.
U.S. stock futures ticked higher after major indexes ended modestly lower in the regular trading session on concerns over rising inflationary pressures and expectations of another Federal Reserve rate hike in December.
Asian markets were mostly higher, with Japan and South Korea leading regional gains, as solid third-quarter earnings from CoreWeave, the builder of AI data centers, eased concerns over the outlook for artificial intelligence trade.
Investors were also reacting to news that Anthropic is targeting a record-breaking IPO, with a proposed valuation of up to $1.4 trillion.
Elsewhere, SoftBank Group Corp shares fluctuated in Tokyo after the technology investor reported its first net loss in almost two years, mainly driven by a $3.7 billion writedown on U.S. data center power equipment advances following changes to project plans.
The U.S. dollar index was little changed after rising half a percent on Tuesday. Gold edged up half a percent to $4,052 an ounce after a nearly 3 percent decline in the previous session, weighed down by a stronger dollar and rising Treasury yields.
The U.S. Treasury yields rose across the board on Tuesday, with the 10-year yield once again crossing the 5 percent mark intraday and two-year yields climbing 17 basis points to 4.73 percent, the most in 19 months, as stronger-than-expected consumer price inflation data fueled bets that the Federal Reserve would need to deliver more aggressive interest rate hikes over the coming months.
Money markets are now pricing in a 25-bps rate hike at the Fed's upcoming policy meeting next month, with some chance of an even larger move.
Some analysts expect the Fed to raise its benchmark interest rate by 0.25 percentage point each in December, January and March.
Oil prices were higher in Asian trading after a two-day decline, with Brent crude futures holding above $92 a barrel, as fresh tanker attacks in the Strait of Hormuz raised concerns over global oil supplies.
Oil prices fell close to ten-week lows on Tuesday amid signs of easing tensions between the U.S. and Iran, and reports suggesting that Middle Eastern oil shipments have nearly returned to prewar levels despite ongoing attacks on vessels in the Strait of Hormuz.
U.S. stocks declined overnight as Nvidia extended losses from the previous session and hotter-than-expected CPI data along with hawkish comments from Federal Reserve officials fueled concerns about further interest rate hikes.
Data showed consumer prices rose 0.4 percent in October, exceeding expectations of a 0.3 percent increase but slowing from September's 0.6 percent rise.
Core consumer prices, which exclude food and energy, rose 0.3 percent month-on-month while economists had expected a 0.2 percent rise. Annual inflation figures were unavailable due to the government shutdown in October 2025.
The yield on the 10-year Treasury note rose above 5 percent earlier in the session after Fed Governor Christopher Waller said at a conference that he is 'leaning toward' a rate hike in December and would support a half-point increase if monthly core inflation remained at around 0.3 percent or higher.
Following the release of CPI data, Dallas Fed President Lorie Logan said the Fed will need at least two additional quarter-point rate increases to prevent price pressures from becoming entrenched.
Fed officials Austan Goolsbee and Tom Barkin warned on Monday that persistent inflation and strong investment in artificial intelligence infrastructure could complicate the central bank's monetary policy outlook.
Ahead of the Fed's monetary policy meeting next month, CME Group's FedWatch Tool indicated a 91 percent chance the Fed will raise rates by a quarter point at its December meeting.
The tech-heavy Nasdaq Composite fell 0.7 percent, the S&P 500 dropped 0.4 percent and the narrower Dow eased 0.3 percent.
European stocks ended mostly higher on Tuesday, thanks to lower oil prices as hopes for a resolution to the Middle East conflict helped ease inflation concerns.
The pan-European STOXX 600 gained 0.3 percent. While the U.K.'s FTSE 100 dipped 0.3 percent, the German DAX rose 0.3 percent and France's CAC 40 climbed 0.6 percent.
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