BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open higher on Tuesday after the Dow Jones Industrial Average and the S&P 500 hit record highs overnight amid a rebound in technology shares.
Financial stocks could also be in focus after U.S. Treasury yields climbed on Monday in the wake of comments from New York Federal Reserve President William Dudley reinforcing expectations the U.S. central bank remains on track to raise rates further despite recent disappointing data releases, including stubbornly low inflation. Dudley said that tightening in the labor market will help drive up inflation.
Separately, Chicago Fed President Charles Evans said that fundamentals are good but the Fed should move only slowly to raise interest rates.
Asian markets are trading mixed, with Japan's Nikkei index climbing over 1 percent to its highest level in nearly two years, as the dollar hit a three-week high against the yen. Chinese and Hong Kong shares remain subdued as investors await a decision on whether the MSCI index committee will include China A-shares in its Emerging Market Index.
The British pound slipped slightly as the U.K. agreed to conduct Brexit negotiations in two phases. Oil prices edged up from seven-month lows while gold held steady near five-week lows.
Bank of England Governor Mark Carney will be delivering a speech at the Mansion House later today after the Confederation of British Industry (CBI) released its latest economic forecast, saying growth will be subdued over the next two years.
Overnight, U.S. stocks rose as technology stocks rebounded from recent losses and expectations of further policy tightening from the Federal Reserve helped lift financials.
The Dow rose 0.7 percent and the S&P 500 added 0.8 percent to close at fresh record highs, while the tech-heavy Nasdaq Composite rallied as much as 1.4 percent.
European markets also rose on Monday as French President Emmanuel Macron's centrist party won a massive majority in the second round of parliamentary elections and Brexit talks got underway in Brussels.
The pan-European Stoxx Europe 600 index rose 0.9 percent. The German DAX rallied 1.1 percent, France's CAC 40 index gained 0.9 percent and the U.K.'s FTSE 100 advanced 0.8 percent.
Copyright RTT News/dpa-AFX