FX.co ★ European Markets Poised for Muted Open

European equity markets were poised for a largely unchanged opening on Thursday, with investors closely monitoring the Bank of England's forthcoming policy announcement. The prevalent expectation is that the central bank will maintain its rates at 4%. Nonetheless, there is growing speculation about a potential 25 basis points rate reduction, prompted by indications of stabilizing inflation and a cooling labor market in the UK. Market participants also focused on earnings reports from key companies like AstraZeneca, Deutsche Post, Rheinmetall, ENGIE, and Legrand. Meanwhile, global risk appetite showed improvement as concerns about overvaluation in AI-related stocks diminished, supported by private data reflecting sustained resilience in the US economy. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures remained steady to slightly negative.