European markets are poised for a higher open as investors turn their attention to earnings, with stocks across the region expected to edge up as the latest reporting season gathers momentum.
Early indicators point to a positive start on Tuesday. The U.K.’s FTSE 100 is forecast to open around 0.18% higher, while Germany’s DAX is seen up 0.15%. France’s CAC 40 is expected to gain about 0.3%, and Italy’s FTSE MIB could rise roughly 0.4%, according to IG data.
Earnings Season Back in Focus
With earnings season kicking back into gear, investors are closely monitoring fresh results from major European names. This week’s calendar includes updates from ASML, Volvo, LVMH, and Deutsche Bank.
Attention will also turn to reports due Tuesday from Atlas Copco, Sandvik, and Logitech International, as markets look for signals on demand, margins, and outlooks amid a mixed global backdrop.
Trade Tensions Add to Uncertainty
Overnight, global markets digested renewed trade concerns after Donald Trump criticized South Korea, warning of steeper tariffs. Posting on Truth Social, Trump said Seoul’s legislature had not approved a trade agreement with Washington and indicated that tariffs on South Korean autos, pharmaceuticals, and lumber could rise from 15% to 25%.
The comments initially weighed on South Korean auto stocks, though some losses were later trimmed.
U.S. Markets and Fed Decision Ahead
In the U.S., S&P 500 futures hovered near flat after Wall Street began the earnings-heavy week on a positive footing. Investors are also positioning ahead of the Federal Reserve’s policy decision later this week. The central bank is widely expected to hold interest rates steady in the 3.5% to 3.75% range, with markets eager for hints on the timing of any future cuts.
Key European Data on Deck
On the data front, traders will be watching for EU new car registration figures, alongside updates on Spanish unemployment and French consumer confidence. Together with earnings results, these releases could help shape sentiment as European markets look to build on an early-week lift.
