This is CNBC’s live blog covering European markets.
European stocks are expected to open in broadly higher territory Wednesday ahead of a U.K.-focused day for markets.
The U.K.’s FTSE 100 index is expected to open 4 points higher at 8,673, Germany’s DAX up 38 points at 23,142, France’s CAC 6 points higher at 8,108 and Italy’s FTSE MIB 87 points higher at 38,769, according to data from IG.
It’ll be a busy day for U.K. financial markets, with the “Spring Statement” from U.K. Finance Minister Rachel Reeves due just after midday local time, and official figures showing U.K. inflation cooled slightly to 2.8% in February.
Reeves is expected to announce billions of pounds worth of spending cuts as a way to close a budget shortfall caused by a rise in borrowing costs since her first fiscal plan released last fall.
Other data releases include French consumer confidence figures. There are no major earnings releases Wednesday.
Asia-Pacific markets traded higher overnight, tracking Wall Street gains on Tuesday on expectations that U.S. President Donald Trump’s tariffs could be softer than expected earlier. U.S. stock futures were little changed Tuesday night.
U.S. markets closed slightly higher Tuesday despite the release of consumer confidence data showing that U.S. consumers’ near-term outlook on income, business and job prospects dropped to the lowest reading in 12 years.
UK long-term borrowing costs rise
Yields on U.K. government bonds — known as gilts — with long maturity terms rose on Tuesday, after official data showed Britain’s inflation rate cooled to 2.8% last month.
The yield on 20-year gilts was 5 basis points higher at 7:40 a.m., while 30-year gilt yields added 1 basis point. Yields on 5- and 10-year gilts were little changed, while 2-year gilt yields were 1 basis point higher.
— Chloe Taylor
Businesses pile pressure on U.K. Financial Minister ahead of budget update
B&Q’s owner, Kingfisher, said the U.K. governments policies were taking a toll on its operations.
Home improvement retailer Kingfisher became the latest British company to report a negative impact from U.K. Finance Minister Rachel Reeves’ October budget — as she prepares her latest update on the state of the British economy.
In its annual earnings release on Tuesday, Kingfisher, which owns home improvement retailer B&Q, said the government’s policies had “raised costs for retailers and impacted consumer sentiment,” with sales of big-ticket items falling.
It is the latest in a line of British businesses that have criticized Reeves’ bumper tax-rising budget since autumn. The companies will now be keeping a close eye on Reeves’ Spring Statement, when she’s set to update lawmakers on her latest spending and taxation plans at 12:30 p.m. London time Wednesday.
— Matt Ward-Perkins
Sterling dips after UK inflation update
The British pound was 0.2% lower against the dollar at 7:19 a.m. in London, shortly after official data showed U.K. inflation cooled to 2.8% in February.
Sterling was last seen trading at $1.2917.
— Chloe Taylor
U.K. expected to unveil more spending cuts amid troubled times for the economy
Rachel Reeves, UK Finance Minister, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025.
Britain’s Labour government will come under intense scrutiny on Wednesday, as Finance Minister Rachel Reeves prepares to update lawmakers on her spending and taxation plans and the nation’s economic outlook amid unsettling times for the U.K.
Reeves is expected to announce billions of pounds worth of spending cuts as a way to close a budget shortfall caused by a rise in borrowing costs since her first fiscal plan, released last fall.
— Holly Ellyatt
U.K. inflation cools to 2.8%
Shoppers walk past temporary billboards for the Regent Street retail business community, on Feb. 25, 2025, in London, England.
Britain’s consumer price index rose by 2.8% in the 12 months to February, figures from the country’s Office for National Statistics showed on Wednesday.
In January, the U.K.’s annual inflation print rose to a higher than expected 3%.
European markets: Here are the opening calls
European markets are expected to open in broadly higher territory Wednesday.
The U.K.’s FTSE 100 index is expected to open 4 points higher at 8,673, Germany’s DAX up 38 points at 23,142, France’s CAC 6 points higher at 8,108 and Italy’s FTSE MIB 87 points higher at 38,769, according to data from IG.
It’ll be a busy day for U.K. financial markets, with the latest inflation data expected at 7a.m. London time, and the “Spring Statement” from U.K. Finance Minister Rachel Reeves due just after midday local time.
Other data releases include French consumer confidence figures. There are no major earnings releases Wednesday.
— Holly Ellyatt
