European stock futures higher; sentiment boosted by Fed comments By Investing.com

Investing.com – European stock markets are expected to open higher Tuesday, following gains on Wall Street and Asia overnight, as investors digest key German inflation and U.K. unemployment data.

At 02:00 ET (06:00 GMT), the contract in Germany traded 0.4% higher, in France climbed 0.3% and the contract in the U.K. rose 0.1%.

End of Fed tightening draws near

Sentiment in Europe has been given a boost by the positive close on Wall Street, with the blue chip gaining over 200 points or 0.6%, on indications that the Federal Reserve was close to concluding its rate hike cycle for the year.

Asia stocks traded largely higher in early trade Tuesday, and Europe is likely to do the same, after several Fed officials on Monday said interest rates will have to rise further to contain inflation, but the end of the tightening cycle is in sight.

Concerns that aggressive tightening by the U.S. central bank to curb inflation will result in the largest economy in the world, and major growth driver, falling into recession have weighed on global markets this year.

German inflation

Wednesday’s release of could offer more clues of the Fed’s likely future action, but the focus Tuesday in Europe will be the release of the final numbers for June.

While inflation is clearly falling in a number of European countries, to below the European Central Bank’s 2% target in the case of , it remains an issue in Germany, the largest economy in the eurozone.

German CPI rose 0.3% on the month in June, climbing 6.4% on the year, an increase from 6.1% the previous month.

Elsewhere, the U.K. rose to 4.0% in May, while the June climbed over 25,000, while rose 7.3% before bonuses.

Renault announces Chinese joint venture

In corporate news, Renault (EPA:) is likely to be in the spotlight Tuesday after the French auto giant signed a joint venture with China’s Geely Automobile (HK:) to launch a company that will manufacture and supply hybrid powertrain engines.

Oil rises on a weaker dollar

Oil prices rose Tuesday, helped by the falling to a two-month low, with this weakness making crude cheaper for foreign buyers, amid growing expectations that the Fed was close to ending its rate hike cycle.

By 02:00 ET, the futures traded 0.5% higher at $73.35 a barrel, while the contract climbed 0.4% to $77.99.

Additionally, rose 0.2% to $1,934.15/oz, while traded 0.2% higher at 1.1015.