The FTSE 100 (^FTSE) opened higher on Wednesday with little in the way of major momentum in European markets.
Investors were focused on central banks and private-sector PMI data. In Britain, Wednesday marked the fifth anniversary of the Brexit vote, although this was more symbolic than market-moving.
IHS Markit is publishing flash PMI readings for June on Wednesday morning. Early data for France showed growth but at a lower level than forecast. Momentum in Germany was better than expected, with the strongest growth since March 2011.
Data for Britain, due at 9.30am UK time, is expected to show a continued bumper recovery as the economy reopens.
The Federal Reserve continues to dominate the conversation within market. The US central bank last week surprised the market by suggesting it could hike US interest rate twice in 2023. It sparked a sell-off of stocks and a rally for the dollar, as investors rejigged portfolios to reflect a sooner-than-expected end to the era of ultra-cheap money.
In testimony and speeches on Tuesday, Fed chair Jerome Powell and his colleagues sought to reassure investors that rate hikes are still a way off. The public comments helped stocks rally and cooled the dollar after a recent price surge.
The Nasdaq (^IXIC) touched a new intraday high on Tuesday and looked set to continue to climb on Wednesday. Futures (NQ=F) were up 0.2% in early trade. Elsewhere, Dow futures (YM=F) were up 0.3% and S&P 500 futures (ES=F) were 0.2% higher.
The pound was up 0.2% against the dollar (GBPUSD=X) in early trade on Wednesday. Cable reached $1.3975, its highest level since last Thursday when the Fed-driven rally for the dollar was gathering pace.
Fed board member Michelle Bowman and Federal Reserve Bank of Boston president Eric Rosengren are both due to give speeches later this afternoon.
Asian markets were mixed overnight, with tech stocks powering the Hong Kong Hang Seng (^HSI) 1.8% higher but gains muted elsewhere. Japan's Nikkei (^N225) closed flat after minutes from the Bank of Japan showed policymakers believed the global economy recovery could be faster than previously expected. It raises the prospect of the removal of stimulus and support measures, which will likely make capital more expensive.
Watch: Will interest rates stay low forever?