BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open broadly higher on Tuesday despite lingering concerns about U.S. President Donald Trump's tariff plans and aggressive negotiation tactics.
Market participants still believe that Trump may soften his stance before the measures take effect on August 1.
Investors also await cues from the U.S. earnings season. Major U.S. banks including JPMorgan, Wells Fargo and Citigroup will report their quarterly results today to mark the unofficial start of the second quarter earnings season, followed by Goldman Sachs, Morgan Stanley and Bank of America later in the week.
On the economic front, U.S. inflation readings due this week may show how pricing for goods and services are responding to the tariff impact.
The key CPI report due later in the day is expected to show an uptick in inflation as companies begin passing on higher import costs.
Fed Chair Jerome Powell may come under increasing pressure to cut rates if the impact is minimal and inflation trends lower.
Under fire for cost overruns, the Federal Reserve has brought in its inspector general to review a building expansion, according to media reports.
Closer home, economic confidence figures from Germany and industrial production data from euro area may garner some attention later in the day.
Asian stocks were mostly higher as data showed China's economy grew 5.2 percent in the second quarter, surpassing analysts' forecasts despite rising trade tensions with the U.S.
The dollar held near a three-week high and gold traded above $3,360 per ounce while oil prices dipped as investors assessed Trump's ultimatum to Russia regarding the Ukraine war and potential sanctions on oil buyers.
U.S. stocks eked out marginal gains overnight despite President Trump threatening new tariffs of 30 percent for the EU and Mexico, and 100 percent secondary tariffs on Russia if a deal on ending the war in Ukraine is not reached within 50 days.
The S&P 500 edged up by 0.1 percent, the Dow gained 0.2 percent and the tech-heavy Nasdaq Composite added 0.3 percent after Trump said he was open to more tariff negotiations with major economies.
European stocks ended broadly lower on Monday after seeing some recovery from intraday lows in afternoon trades as reports emerged that the EU is preparing retaliatory measures against U.S. tariffs.
The pan European STOXX 600 ended little changed with a negative bias. The German DAX fell 0.4 percent and France's CAC 40 shed 0.3 percent while the U.K.'s FTSE 100 gained 0.6 percent to reach a fresh record high.
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