Traders work on the floor of the New York Stock Exchange during morning trading on November 17, 2025 in New York City.
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LONDON — European stocks are set for a soft open on Wednesday as doubts continue over tech stocks, with investors eagerly awaiting Nvidia earnings later.
The U.K.’s FTSE index is seen opening flat, Germany’s DAX down 0.2%, France’s CAC 40 down 0.11% and Italy’s FTSE MIB slightly higher, according to data from IG.
Global markets have been on edge this week with conerns over AI-related tech stocks and valuations returning to the fore.
U.S. stock futures were little changed overnight after major U.S. indexes extended their losses on Tuesday, driven again by pressure in tech shares. Investors on Wednesday are now preparing themselves for Nvidia’s earnings report, due to be released after the U.S. market close, to inform the strength of the AI trade.
Analysts largely expect Nvidia to meaningfully beat Wall Street’s expectations and forecast strong sales growth, driven by demand for its AI chips and other infrastructure.
But the company has to meet lofty expectations among investors, who have taken profits from their tech holdings in recent days, reflecting heightened concerns that the AI boom has run up the valuations of Nvidia and other tech hyperscalers.
UK inflation cools
Data released on Wednesday morning showed the U.K.’s annual inflation rate cooled to 3.6% in October, raising the chances of a Christmas rate cut from the Bank of England. The print, which comes a week before the government’s high stakes Autumn Budget, was in line with economists’ expectations.
Sterling was flat against both the U.S. dollar and the euro in the immediate aftermath of the release.
British pound versus U.S. dollar
Meanwhile, yields on U.K. government bonds — known as gilts — were marginally lower across the maturity curve.
The U.K. government has the highest long-term borrowing costs of any G-7 nation, with the yield on its 30-year gilt trading well above the critical 5% threshold.
In a note sent after the inflation release, Deutsche Bank’s Chief U.K. Economist Sanjay Raja said Tuesday’s data made a rate cut from the Bank of England’s Monetary Policy Committee next month more likely.
“With the labour market softening more than expected, GDP growth weaker than the Bank of England projected, and (underlying) inflation tracking a little lower than BoE expectations, we think Governor [Andrew] Bailey — who will likely have the deciding vote for December — will feel more confident about cutting [the] Bank Rate below 4%,” he said.
— CNBC’s Pia Singh contributed to this market report.
