The FTSE 100 is expected to start 6 points higher at 7,186; while the DAX is seen dropping 3 points at 12,305 and the CAC 40 is set to open 4 points down at 5,150, according to IG.
In Asia, stocks pulled further away from two-month lows on Tuesday as investors regained some confidence after last week’s steep losses. Stateside, Wall Street’s three major indexes rose for the second consecutive session on Monday after U.S. equities sustained their biggest weekly fall in two years.
Despite the gains in Asia and the U.S., caution lingered in the broader markets as stronger-than-anticipated U.S. inflation data on Wednesday could prompt another wave of selling.
On the corporate front, Telekom Austria, Natixis and Randstad are among some of the major European companies expected to report their latest figures on Tuesday.
Elsewhere, U.K. inflation data for January is expected to be published at around 9:30 a.m. London time.