European markets are heading for a higher open, with investor focus on the German government as it votes on historic debt reforms on Tuesday.
The U.K.’s FTSE 100 index is expected to open 18 points higher at 8,696, Germany’s DAX up 90 points at 23,207, France’s CAC 21 points higher at 8,091 and Italy’s FTSE MIB 101 points higher at 39,098, according to data from IG.
Earnings are set to come from Travis Perkins and Eni, while data releases will include the ZEW economic sentiment surveys for Germany and Europe.
Germany’s DAX will be closely watched Tuesday as lawmakers in Berlin vote on reforms to the country’s so-called debt brake rule to enable a rise in public borrowing in order to fund a hike in defense spending.
The motion, which requires a change to the German Constitution, needs backing from two-thirds of the lawmakers elected to the country’s parliament.
Traders will also be keeping an eye on talks between U.S. President Donald Trump and Russian leader Vladimir Putin on Tuesday in which they’re expected to discuss, over the phone, a potential 30-day ceasefire in Ukraine and Russia’s conditions for agreeing to a pause in the war.
Asia-Pacific markets rose overnight, tracking gains on Wall Street, which ticked up after U.S. retail sales data appeared to ease recession concerns. U.S. stock futures edged down Monday night.