European Stocks Bounce on Reduced Rate Hike Odds

European equity markets are poised for a higher open on Friday as softer-than-expected US inflation data has eased concerns over an imminent Federal Reserve interest rate hike. The probability of a 25 basis point Fed rate increase in September has dropped to around 35%, down from 55% just a week ago.

The decrease in the expected rate hike has boosted risk sentiment across global markets, with renewed demand for artificial intelligence-related stocks supporting this trend. Meanwhile, investors in Europe will focus on the latest Eurozone GDP, employment and trade data, as well as German wholesale prices and French inflation figures.