European Markets Seen Gaining On Tuesday

(RTTNews) - Positive sentiment is expected to prevail in stock markets in Europe on Tuesday as earnings optimism, tech sector strength and expectations of a favorable economic scenario boost sentiment. The momentum in Asian markets on Tuesday is also expected to bolster sentiment further.

Wall Street had closed on a mildly positive note on Monday amidst expectations of a mild CPI report and optimism over the onset of earnings season. The Dow Jones Industrial Average added 0.17 percent to finish trading at 49,590.20. The tech-heavy Nasdaq Composite gained 0.26 percent to close trading at 23,733.90.

European markets too closed on a mostly positive note on Monday as indications of a favorable macroeconomic situation eclipsed geopolitical tensions. Germany's DAX rallied 0.57 percent to close at a record high. The pan-European Stoxx-50 followed with gains of 0.32 percent. U.K.'s FTSE 100 gained 0.16 percent and closed at a record high. Switzerland's SMI edged up 0.02 percent whereas France's CAC 40 edged down 0.04 percent.

Current indications from the European stock futures indicate a positive sentiment. The DAX Futures (Mar) is trading 0.18 percent higher. The pan-European Stoxx 50 Futures (Mar) is trading 0.27 percent higher. The FTSE 100 Futures (March) is also trading 0.04 percent higher. The CAC 40 Futures (Feb) stood 0.09 percent above the flatline on Monday. The SMI Futures (Mar) closed on a flat note on Monday.

American stock futures are trading in negative territory. The US 30 (DJIA) is trading 0.05 percent lower, whereas the US500 (S&P 500) is trading 0.09 percent below the flatline.

Asian stock markets are trading on a mostly positive note amidst continuing strength of the tech sector. Japan's Nikkei 225 has jumped 3.3 percent on reports over likely snap elections. South Korea's KOSPI has surged 1.4 percent. Australia's S&P ASX 200 added 0.56 percent. China's Shanghai Composite has slipped 0.30 percent whereas Hong Kong's Hang Seng has added 0.93 percent. India's Nifty 50 is trading near the flatline. DJ New Zealand has declined 0.26 percent.

The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, is trading at 98.96, rising 0.10 percent from 98.86 on Monday as markets digested the fresh tariff threats, unrest in Iran as well as the Trump-Fed feud. The EUR/USD pair is trading almost flat at 1.1666 whereas the GBP/USD pair has edged up 0.07 percent to trade at 1.3474. The USD/CHF pair is also trading flat at 0.7970. The EUR/GBP pair is trading 0.10 percent lower at 0.8658. Amidst rising political uncertainty in Japan, the Japanese yen weakened to a 1-year low lifting the EUR/JPY pair 0.35 percent to 185.16 and the GBP/JPY pair 0.46 percent to 213.88.

Gold prices retreated from the record level of $4,640.26 touched on Monday. Gold Futures for February settlement are currently trading at $4,594.69, down around 0.4 percent from the previous close of $4,614.70.

Both the crude oil benchmarks are trading well above the flatline amidst lingering concerns over the supply of crude oil from Iran. Brent Crude Futures for March settlement is trading at $64.11, around 0.4 percent higher than $63.87 at close on Monday. WTI Crude Futures for March settlement is currently at $59.71, around 0.65 percent higher than $59.32 at the previous close.

No major economic data releases are due from the region on Tuesday. All eyes are on the consumer price inflation readings for December due from the U.S. on Tuesday morning.

Major updates to earnings due from the region include Hornbach-Baumarkt as well as Suedzucker.