BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open higher on Tuesday as investors watch the latest geopolitical developments and await key U.S. jobs and inflation readings for additional clues on the economic and rate outlook.
As economic uncertainties mount, the December employment report, New York Fed's December inflation expectations survey results, and November JOLTS figures on job openings, hires, quits, and layoffs will be in the spotlight this week.
Over the weekend, Philadelphia Fed President Anna Paulson signaled cautious optimism on the 2026 economic outlook and hinted that another rate cut is data dependent.
Minneapolis Fed President Neel Kashkari told CNBC on Monday that inflation remains elevated, and he thinks the central bank is nearing the point where it should stop lowering interest rates.
Fed Governor Michelle Bowman and Richmond Fed President Tom Barkin are due to speak later in the week.
Closer home, preliminary CPI readings for France and Germany may garner investor attention later in the day.
On the geopolitical front, U.S. President Donald Trump on Monday insisted the U.S. was not at war with Venezuela.
In an interview with NBC News, he projected a longer-term engagement, adding the country will not have new elections in the next 30 days.
'We have to fix the country first. You can't have an election. There's no way the people could even vote. It's going to take a period of time. We have to nurse the country back to health,' Trump said.
Asian markets extended a global record run, with China, Hong Kong and Japan leading regional gains as investors overlooked geopolitical tensions.
The dollar steadied near a two-week high while gold traded higher at a one-week high above $4,460 per ounce. Oil edged lower after settling up $1 a barrel on Monday.
U.S. stocks rose overnight after the U.S. captured Venezuelan leader Maduro over the weekend and President Trump called for American energy giants to rebuild the country's energy sector.
Investors shrugged off data that showed economic activity in the U.S. manufacturing sector contracted in December for the 10th consecutive month.
The Dow surged 1.2 percent to reach a new record closing high, while the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite advanced 0.7 percent.
European stocks closed on a firm note on Monday, with defense, technology and mining stocks leading the surge.
The pan European Stoxx 600 advanced 0.9 percent. The German DAX rallied 1.3 percent, France's CAC 40 edged up by 0.2 percent and the U.K.'s FTSE 100 added half a percent.
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