European stocks are set to follow their U.S. counterparts lower on Thursday after the Federal Reserve chairman hinted that lower rates may not be in the cards.
The FTSE 100 is seen 38 points lower at 7,347, the CAC is expected to open 39 points lower at 5,547, while the DAX is poised to start down around 37 points at 12,307, according to IG.
Fed Chairman Jerome Powell said in a news conference Wednesday that recently low inflationary pressures may only be “transitory,” dashing speculation the central bank was at least entertaining the idea of a rate cut because of tame inflation.
In Europe, most major bourses were reopening after the May Day holiday. Carlsberg, BNP Paribas, Shell, ING and VW were just some of the companies due to report corporate earnings on Thursday morning.
Meanwhile, investors in the U.K. will monitor a rate decision from the Bank of England. There are also local elections being held in the country.