Stoxx 600, FTSE, DAX, CAC, Nvidia earnings

LONDON — European stocks are set for a soft open on Wednesday as doubts continue over tech stocks, with investors eagerly awaiting Nvidia earnings later.

The U.K.’s FTSE index is seen opening flat, Germany’s DAX down 0.2%, France’s CAC 40 down 0.11% and Italy’s FTSE MIB slightly higher, according to data from IG.

Global markets have been on edge this week with conerns over AI-related tech stocks and valuations returning to the fore.

U.S. stock futures were little changed overnight after major U.S. indexes extended their losses on Tuesday, driven again by pressure in tech shares. Investors on Wednesday are now preparing themselves for Nvidia’s earnings report, due to be released after the U.S. market close, to inform the strength of the AI trade.

Analysts largely expect Nvidia to meaningfully beat Wall Street’s expectations and forecast strong sales growth, driven by demand for its AI chips and other infrastructure.

But the company has to meet lofty expectations among investors, who have taken profits from their tech holdings in recent days, reflecting heightened concerns that the AI boom has run up the valuations of Nvidia and other tech hyperscalers.

Data released on Wednesday morning showed the U.K.’s annual inflation rate cooled to 3.6% in October, raising the chances of a Christmas rate cut from the Bank of England. The print, which comes a week before the government’s high stakes Autumn Budget, was in line with economists’ expectations.

Sterling was flat against both the U.S. dollar and the euro in the immediate aftermath of the release. Meanwhile, yields on U.K. government bonds — known as gilts — were marginally lower across the maturity curve.

The U.K. government has the highest long-term borrowing costs of any G-7 nation, with the yield on its 30-year gilt trading well above the critical 5% threshold.

— CNBC’s Pia Singh contributed to this market report.