European stocks are anticipated to open lower as investors await crucial U.S. inflation data and the European Central Bank's (ECB) rate decision.

At the upcoming ECB meeting, a small rate cut of 25 basis points is likely, which would adjust the benchmark rate to 3%.

In the U.S., stocks rose broadly, with the Nasdaq Composite climbing 1.8% to a record high above 20,000, positively influencing Asian markets and setting a hopeful tone for European shares.

Asian stocks advanced, particularly in China, following government announcements of significant policy changes aimed at stimulating the economy.

Economically sensitive sectors, including oil & gas, automotive, and mining, were the primary drivers of the morning's gains in European markets.

The energy sector is performing positively, supported by stable oil prices amid indications from the U.S. of potential additional sanctions against Russian and Iranian oil.

Crude oil prices rose by 1.74% to $68.37 per barrel due to geopolitical tensions and expected monetary policy easing in China.

The U.S. dollar reached its highest level this month against the yen, influenced by escalating conflict in Syria.

In South Korea, the Kospi index surged 2.43% to 2,417.84, recovering from one-year lows as financial authorities promised to address market volatility.

Producer prices in Japan rose 3.7% year-on-year in November, exceeding expectations and showing stability compared to the previous month.

Cyprus has frozen £1.5 billion in Russian assets since the onset of the Ukraine conflict, contributing to efforts against Russia's war funding.

The floating storage and regasification unit (FSRU) Prometheas is set to depart for Cyprus from Shanghai, confirming its imminent arrival.