BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open on a firm note on Tuesday, with investor attention likely to remain focused on U.S.-Iran talks, the latest batch of corporate earnings results and upcoming key U.S. payrolls data for July.
Shares of Palantir Technologies soared nearly 14 percent in after-hours trading on Monday after the data analytics company delivered strong second-quarter earnings results and raised its revenue guidance for full-year 2026.
SpaceX is slated to report its quarterly results for the first time as a public company later today, with the pace of revenue growth, Starlink average revenue per user and AI revenue guidance likely to be in the spotlight.
Chipmaking giant AMD, industrial giant Caterpillar and drugmaker Merck & Company are also scheduled to publish their earnings results later today.
In economic news, a series of U.S. labor market reports due this week, including the all-important nonfarm payrolls data for July may provide fresh insights into the economic and rate outlook.
On the geopolitical front, U.S. President Donald Trump said negotiations with Iran were ongoing and this is a last chance for them to sign a good document before decapitation.
Trump outlined a two-stage roadmap for any potential agreement. 'The first phase is the opening of the straits. The second phase will be the denuclearization,' Trump said.
However, Tehran denied that any negotiations are taking place, adding only confirmed discussions were with Oman over a temporary shipping route through the Strait of Hormuz.
Amid heightened regional tensions, a cargo vessel was reportedly struck by an unknown projectile in the Strait of Hormuz off the coast of Oman.
Asian markets were mixed in cautious trade. The U.S. dollar index was pinned near a two-month low while the yield on the U.S. 10-year Treasury bond edged up slightly to 4.684 percent on bets the Federal Reserve may deliver a quarter-point rate hike in September.
Federal Reserve Bank of New York President John Willams said he expects inflation to fall in the second half of 2026, but the Fed will act if it stays above its 2 percent target.
The yen held on to most of its intervention-driven gains after U.S. Treasury Secretary Scott Bessent publicly called on the Federal Reserve to expand its FIMA Repo Facility to help Japan avoid directly selling U.S. Treasuries when supporting the Japanese currency, reigniting concerns about Fed independence.
Gold was marginally higher at $4,062 an ounce while Brent crude futures surged above $85 a barrel, after having fallen to a three-week low on Monday.
U.S. stocks posted strong gains overnight on the back of easing oil prices, lower Treasury yields and upbeat manufacturing data.
The Dow rose 1.3 percent to notch a record-high close and the S&P 500 climbed 1.5 percent while the tech-heavy Nasdaq Composite soared 2.1 percent to extend gains for the third consecutive day, led by cloud providers.
European stocks closed mostly higher on Monday after U.S. President Trump canceled a planned attack on Iran and announced that he was preparing for renewed negotiations with Tehran to end the regional war.
The pan-European STOXX 600 gained half a percent. The German DAX rallied 1.5 percent and France's CAC 40 surged 1.2 percent while the U.K.'s FTSE 100 finished marginally lower following downwardly revised manufacturing PMI data.
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