European markets head for higher open as traders assess simmering geopolitical tensions

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European markets are expected to open higher Wednesday as markets keep an eye on a spike in tensions in the Ukraine-Russia war.

The U.K.'s FTSE 100 index is expected to open 4 points higher at 8,106, Germany's DAX up 46 points at 19,108, France's CAC up 23 points at 7,252 and Italy's FTSE MIB up 118 points at 33,567, according to data from IG.

The FTSE 100 will be watched closely Wednesday after data showed U.K. inflation picked up sharply to a higher-than-expected 2.3% in October.

Global markets fell on Tuesday as investors reacted to Russia lowering the threshold for a nuclear strike, and after Ukraine used U.S.-made long-range ballistic missiles to attack Russian territory for the first time, stoking tensions between Russia and the West.

Asia-Pacific markets were mostly lower overnight after a mixed day on Wall Street amid the mounting geopolitical tensions. U.S. stock futures ticked higher on Tuesday evening, as investors looked toward a key earnings report from tech giant Nvidia. Traders are looking for more details on demand for Nvidia's Blackwell AI chips, which CEO Jensen Huang last month characterized as "insane."

How the semiconductor giant fares — given its market capitalization of $3.6 trillion — could set the tone for the S&P 500 and the Nasdaq Composite for the rest of the week.

U.K. inflation picks up in October

A shopper browses fruit and vegetables for sale at an indoor market in Sheffield, UK. The OECD recently predicted that the UK will experience the highest inflation among all advanced economies this year.

Bloomberg | Bloomberg | Getty Images

U.K. inflation picked up sharply to a higher-than-expected 2.3% in October, data from the British Office for National Statistics showed Wednesday.

The hike marks a sharp increase from the 1.7% rise recorded in September and exceeds the 2.2% forecast of economists polled by Reuters.

Core inflation, which excludes energy, food, alcohol and tobacco, came in at 3.3% for the month, up slightly from 3.2% in September.

Read more on the story here: UK inflation rises sharply to 2.3% in October, above expectations

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