European stocks are seen opening flat to slightly higher on Wednesday, following gains on Wall Street overnight that saw the tech-heavy Nasdaq Composite rising to a record high.

Asian markets traded mostly higher after Fed Chair Jerome Powell reiterated that inflation pressures will be temporary and stressed that the Fed will do everything to support the economy for as long as it takes to complete the recovery.

COVID worries persist, with the U.S. Centers for Disease Control and Prevention classifying the Delta, a highly transmissible COVID-19 variant, as a “variant of concern.”

“The Delta variant is currently the greatest threat in the U.S. to our attempt to eliminate COVID,” White House Chief Medical Advisor Dr Anthony Fauci has warned.

The dollar remained elevated and gold held steady, while Bitcoin recovered some ground after having fallen below US$30,000 in a volatile session.

Oil held above $73 a barrel after industry data pointed to another decline in U.S. crude stockpiles. Investors await the Organization of the Petroleum Exporting Countries and allies (OPEC+) meeting for clues on production policy.

In economic releases, flash manufacturing and service PMIs will give further insight into the reopening progress of major economies in Europe.

The Governing Council of the ECB is set to conduct a non-monetary policy meeting.

Comments from ECB Vice President Louis De Guindos may offer some direction to EUR/USD traders.

Across the Atlantic, traders are likely to keep an eye on the Commerce Department’s report on new home sales for the month of May.

U.S. stocks rose overnight after Fed Chair Powell’s reassuring comments on inflation and monetary policy.

The tech-heavy Nasdaq Composite climbed 0.8 percent to reach a new record closing high, while the S&P 500 rose half a percent and the Dow edged up 0.2 percent.

European stocks ended in positive territory on Tuesday as mining and energy companies benefited from stable commodity prices.

The pan European Stoxx 600 gained 0.3 percent. The German DAX inched up 0.2 percent, France’s CAC 40 index gained 0.1 percent and the U.K.’s FTSE 100 added 0.4 percent.

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