European Stock Futures Higher; Powell Testimony Prompts Optimism By Investing.com – Investing.com

European Stock Futures Higher; Powell Testimony Prompts Optimism By Investing.com – Investing.com

© Reuters.

By Peter Nurse 

Investing.com - European stock markets are expected to open higher Wednesday, continuing the global rally after Fed Chairman Jerome Powell indicated confidence in the U.S. economic recovery but didn’t point to an accelerated path towards policy normalization.

At 2 AM ET (0700 GMT), the contract in Germany traded 0.3% higher, in France climbed 0.7% and the contract in the U.K. rose 0.6%.

The main equity indices closed higher Tuesday, with the tech-heavy leading the way, and this positive tone has been matched in Asia overnight. 

At his for a second term in charge of the U.S. central bank, Powell stated that the economy could handle tighter monetary policy even in the face of the new Covid-19 surge. He, however, did not announce a quicker change in policy from what had already been signalled, to the market's relief.

A new test of sentiment is expected later Wednesday with the release of the for December, which is expected to come in hot, climbing to 7% year-on-year.

Back in Europe, Germany reported a new daily record for Covid-19 cases on Tuesday, illustrating that the Omicron variant continues to run wild through