European equity markets were poised to open higher on Wednesday, extending the previous session’s gains as investor sentiment held firm despite elevated geopolitical uncertainty in the Middle East. The tension in the region kept oil prices high, reinforcing concerns about inflation and the trajectory of interest rates.
On the macroeconomic front, fresh data showed that UK inflation slowed to 2.6% in June from 2.8% in May, undershooting the consensus forecast of 2.7%. The moderation was largely driven by lower petrol and diesel prices.
In corporate news, Spanish lender Banco Santander reported second-quarter net income ahead of analyst expectations, supported by continued strong customer growth. Investors are also set to focus on earnings updates from Roche Holding, Iberdrola, UniCredit, TE Connectivity, and other major companies.
In premarket trade, futures on both the Euro Stoxx 50 and the Stoxx 600 were up around 0.2%.
