European markets set to open lower after hotter-than-expected U.S. inflation data

European markets are expected to open slightly lower on Friday due to concerns regarding US inflation data, which has impacted confidence in potential interest rate cuts by the Federal Reserve. The US Producer Price Index rose 0.6% in February, higher than expected. Investors are closely watching US inflation data in anticipation of the Federal Reserve’s upcoming policy meeting. The central bank is likely to keep the benchmark interest rate steady, but market participants are looking for clues about future rate cuts. The European Central Bank’s chief economist mentioned the importance of taking the time to make interest rate cuts correctly. Asian markets fell on Friday, and US stock futures also declined. The AI boom is benefiting semiconductor stocks, although there is a growing gap between those performing well and those that aren’t. Fidelity International suggests considering alternative sectors that may indirectly benefit from AI rather than focusing solely on hot AI stocks. European markets are expected to open negatively, with the UK’s FTSE 100 down 5 points, Germany’s DAX down 34 points, France’s CAC down 18 points, and Italy’s FTSE MIB down 45 points. The Berkeley Group will provide a trading update, and Italy’s final consumer prices for February will be released.