Diminishing perspective of downtown London skyscrapers
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LONDON — European stocks are expected to open higher Tuesday, as a busy earnings week gathers pace.
The U.K.’s FTSE index is seen opening 0.18% higher, Germany’s DAX up 0.15%, France’s CAC 40 up 0.3%, and Italy’s FTSE MIB 0.4% higher, according to data from IG.
Earnings season is getting underway again with regional investors keeping an eye on the latest financial reports from ASML, Volvo, LVMH and Deutsche Bank, among others, this week. On Tuesday, Atlas Copco, Sandvik and Logitech International are due to report.
There’s been more global trade uncertainty overnight after U.S. President Donald Trump took aim at South Korea Monday, saying he would increase tariffs on Asia’s fourth-largest economy.
Trump said on Truth Social that the country’s legislature has not approved Seoul’s trade deal with Washington, and that tariffs on South Korean autos, pharmaceuticals and lumber would rise from 15% to 25%. Shares of South Korean autos fell sharply but pared losses overnight.
S&P 500 futures were near the flatline overnight after the major averages started the busy earnings week on a positive note. Investors are also waiting for the Federal Reserve’s rate decision later this week.
The central bank is widely expected to keep its key rate at a target range of 3.5% to 3.75%, but traders will search for clues on when future cuts may come.
European data releases include EU new car registrations, Spanish unemployment data and French consumer confidence figures.
— CNBC’s Pia Singh contributed to this market report.