European Markets Set to Open Higher as Geopolitical Tensions and U.S. Data Shape Investor Sentiment

European stocks are expected to open broadly higher on Tuesday, extending a cautiously optimistic start to the week as investors continue to assess geopolitical risks and upcoming economic data. Early indications suggest a steady mood across major bourses despite lingering global uncertainties.

According to data from IG, the U.K.’s FTSE is projected to open flat, while Germany’s DAX and France’s CAC 40 are each seen rising by about 0.2%. Italy’s FTSE MIB is also expected to edge higher by 0.14%, reflecting modest gains across the region.

Markets in Europe began the week in positive territory as attention turned to developments in Iran and political tensions in the United States. Investors are weighing the implications of a newly launched criminal investigation into U.S. Federal Reserve Chair Jerome Powell, a move Powell described as an attempt by President Donald Trump to influence monetary policy. Powell has insisted he will not bow to pressure, with his term set to end in May.

Geopolitical risks remain firmly in focus, particularly in Iran, where widespread protests have been met with a violent crackdown by authorities. President Trump has signaled he is considering options for action against Iran and warned that any country doing business with Tehran would face a 25% tariff on all trade with the United States, raising concerns about global trade and energy markets.

Elsewhere, Asia-Pacific markets traded higher overnight, while U.S. stock futures edged lower ahead of key events. Investors are awaiting the release of U.S. consumer inflation data and major bank earnings, with JPMorgan due to report later Tuesday. Economists expect U.S. consumer prices to show a 2.7% annual increase in December, while no major economic data or earnings releases are scheduled in Europe for the day.

source: cnbc