European markets head for higher open anticipating ECB rate cut; Shell and Deutsche Bank earnings on deck

European markets were set to open higher Thursday as investors await key earnings, economic data and the European Central Bank's latest monetary policy decision.

The U.K.'s FTSE 100 index is expected to open 2 points lower at 8,555, Germany's DAX up 24 points at 21,649, France's CAC up 25 points at 7,892 and Italy's FTSE MIB up 72 points at 36,627, according to data from IG.

The ECB is expected to kick off its first meeting of 2025 with a 25-basis-point interest rate cut Thursday. The move would bring its key overnight deposit facility rate to 2.75%, marking its fifth cut since the bank began easing monetary policy last June.

Market watchers expect further easing this year despite euro zone inflation ticking upwards over the past few months; activity in the single currency area's manufacturing and services sectors remains broadly subdued and consumer confidence is below its long-term average, European Commission data shows.

Against this backdrop, investors will be closely watching the latest growth data from France, Germany and the euro zone on Thursday, as well as euro zone unemployment, economic sentiment and consumer confidence figures.

On the earnings front, Nokia, ABB, Roche, Deutsche Bank, H&M, Shell, BT Group, Sage Group, Wizz Air, Electrolux, BBVA, Caixabank, Nordea and Sanofi are all due to report Thursday.

Overnight in the Asia-Pacific region, Australian and Japanese stocks extended gains from the previous session. Taiwan, South Korea, Hong Kong and China markets are closed for Lunar New Year holidays.

Meanwhile, U.S. stock futures rose Wednesday night as Wall Street digested recent quarterly results from several megacap tech companies, and the Federal Reserve's decision to hold steady on rates.