European markets poised to open higher after ECB rate cut

LONDON — European stocks are set to open higher Friday as investors continue to digest the European Central Bank’s decision to cut rates and its impact on future monetary policy.

The U.K.’s FTSE 100 is seen opening 1 point higher at 8,239, France’s CAC up 20 points at 7,448, Germany’s DAX 57 points higher at 18,563 and Italy’s FTSE MIB up 41 points at 33,484 ,according to IG data.

The European Central Bank slashed rates as expected on Thursday, marking its second 25-basis-point cut this year and bringing its key interest rate to 3.5%.

Policymakers gave little indication on the course for monetary policy, however, with President Christine Lagarde saying the bank was not “pre-committing to a particular rate path.”

The ECB’s meeting comes just days ahead of the U.S. Federal Reserve’s Sept. 17-18 meeting, at which it’s expected to begin its own rate-cutting cycle.

U.S. stock futures were little changed overnight after the S&P 500 notched its fourth-straight winning session.

Asia-Pacific markets, meanwhile, were mixed, as mainland Chinese markets rebounded from a six-year low and Australian markets near an all-time high.

Back in Europe, inflation data is due out of France on Friday. There are no corporate earnings.