In the Asian session, the German Benchmark Index traded above 18,500 levels.
European stock markets appear poised to open slightly higher on Wednesday, fueled by expectations that subdued inflationary pressures will prompt the European Central Bank (ECB) to initiate interest rate reductions earlier than the Federal Reserve.
Following the decision to maintain borrowing costs at their current levels last Thursday, the ECB is anticipated to pave the way for three or four rate cuts by the year's end. This forward-looking stance reflects a proactive approach to monetary policy aimed at addressing economic challenges and fostering stability within the Eurozone.
On Tuesday, the pan European STOXX 600 declined 0.6 percent. The German DAX lost 1.3 percent, France's CAC 40 shed 0.9 percent and the U.K. 's FTSE 100 slipped 0.1 percent.
