Europe set for dour open as markets shrug off Wall Street rebound

Market Overview - European stocks are expected to open flat to lower, with the U.K.'s FTSE index slightly down, Germany's DAX down 0.2%, France's CAC 40 down 0.42%, and Italy's FTSE MIB unchanged [1] - The expected dour open in Europe follows a rebound in major U.S. averages, driven by strength in the artificial intelligence sector and renewed hopes for a Federal Reserve interest rate cut [2] Federal Reserve Insights - Markets are pricing in over an 80% chance of a quarter percentage point cut from the Federal Reserve in December, influenced by recent comments from New York Fed President John Williams and San Francisco Fed President Mary Daly regarding the potential for rate cuts due to labor market concerns [3][4] Earnings and Economic Data - Key earnings reports in Europe include Compass Group, Easyjet, and Kingfisher, alongside important data releases such as German GDP and French consumer confidence [4] U.K. Economic Developments - Investors in the U.K. are preparing for the Autumn Budget, with expectations of significant tax hikes to be announced by U.K. Chancellor Rachel Reeves [5]