European markets are expected to open higher, with the FTSE 100, DAX, CAC, and FTSE MIB all projected to see gains. This positive outlook comes despite subdued market sentiment influenced by recent developments in the tech sector.

Earnings Reports and Inflation Figures

Earnings reports from companies like Severn Trent and British Land, as well as the release of U.K. inflation figures, are on the horizon and will be closely monitored by investors.

Market Sensitivity to Guidance

The tech sector, particularly semiconductor-related stocks, experienced a downturn following Nvidia's earnings forecast. Despite reporting better-than-expected results, Nvidia's shares dropped, highlighting the market's sensitivity to guidance.

Impact on Asian Markets

This negative sentiment has impacted Asian markets as well. Shares of India's Adani Group have plummeted following the indictment of its chairman, Gautam Adani, in a New York federal court. The allegations involve bribery and fraud, leading to significant losses for Adani Group companies.

Concerns about Inflation Targets

Federal Reserve Governor Michelle Bowman has expressed concerns about achieving the central bank's inflation targets.

Market Valuations and Potential Corrections

Market valuations are also under scrutiny, with analysts warning of potential corrections in the stock market due to stretched valuations.