European stocks may open higher on Wednesday after U.S. Treasury Secretary Janet Yellen clarified she is not predicting Fed rate increases to rein in any inflation spurred by President Joe Biden's proposed spending.
Yellen said in remarks webcast during The Atlantic's Future Economy Summit early on Tuesday that interest rates may need to rise slightly to keep the economy from overheating.
Asian stocks are trading mixed in thin trading, with markets in Japan, China and South Korea shut for holidays.
Gold edged up on a weaker dollar, while oil prices extended overnight gains after industry data showed U.S. crude stockpiles fell much more than expected last week.
Private sector PMIs from the euro zone are due later in the session. Investors also await a speech from the European Central Bank's (ECB) Philip Lane, a member of the bank's executive board.