Stoxx 600, FTSE, DAX, CAC, Iran latest, UK inflation

LONDON — European stocks are expected to open in negative territory on Wednesday as global markets keep a close eye on elevated bond yields and await U.K. inflation data due later this morning.

The U.K.’s FTSE index is seen opening 0.6% lower, Germany’s DAX down 0.7%, France’s CAC 40 down 0.5% and Italy’s FTSE MIB 0.4% lower, accoridng to data from IG.

European bourses look set to follow Asia-Pacific markets lower as investors assess elevated bond yields and inflationary pressures. Yields on U.S. Treasurys rose Tuesday with the 30-year Treasury yield above 5.19%, its highest level since 2007. Meanwhile, the benchmark 10-year yield climbed toward 4.69%.

Geopolitical tensions are also in focus after U.S. President Donald Trump said in a statement Tuesday that he was “an hour away” from deciding to attack Iran, before he was persuaded to postpone the strike for a few days.

U.K. inflation eased to a lower-than-expected 2.8% in April, preliminary data from the Office for National Statistics showed on Wednesday.

Economists polled by Reuters had expected the inflation rate to drop back to 3%, cooling from 3.3% in March, largely due to an energy price cap introduced by the U.K.’s energy regulator Ofgem on April 1.

Consumer prices are expected to continue to increase, however, as higher energy costs due to the Iran war continue to materialize.

Earnings come from Experian, with the credit and data analytics firm lining up a $1 billion share buyback program and forecasting organic revenue growth of 6% to 8% for fiscal 2027.