European Shares Seen Broadly Higher At Open

(RTTNews) - European stocks are seen opening broadly higher on Tuesday, even as London's FTSE 100 may pull back as oil prices extended their sharp retreat on hopes for diplomatic progress between the United States and Iran to end the conflict in the Middle East.

Regional gains, however, may remain limited as investors await big tech earnings and a looming Federal Reserve decision.

Tech giants Microsoft, Meta Platforms, Apple and Amazon are due to report their earnings this week, with investors looking for fresh insights into capital expenditure guidance and AI monetization after Alphabet and Tesla both reported massive spending increases.

Meanwhile, the U.S. Federal Reserve is set to announce its monetary policy decision on Wednesday, with analysts expecting no change in interest rates.

Fed Chair Warsh "wants to do the right thing," but is facing a Fed board that might oppose him, President Donald Trump told reporters en route to an event in Michigan on Monday while repeating his long-stated wish for cuts in interest rates.

Asian markets were moving lower, with tech-heavy Japan and South Korea leading losses amid doubts over returns from billions of dollars of artificial-intelligence spending.

Brent crude futures fell toward $87 a barrel, marking a third consecutive session of losses after Trump told Axios that he chose to suspend strikes on Iran in order to give negotiations another chance, stressing that he could order a return to expanded military operations if diplomacy fails.

It was said that the talks are being conducted mainly between Iran and Oman, but Qatar, Pakistan, Egypt and Trump's envoys, Steve Witkoff and Jared Kushner, are also actively involved.

Tehran also ceased retaliatory strikes against U.S. bases in neighboring countries while Kazakhstan resumed crude oil exports through the Caspian Pipeline Consortium terminal that had been disrupted by Ukrainian drone attacks.

The U.S. dollar hovered near a one-month high while gold dipped nearly 1 percent below $4,050 an ounce as traders await the Federal Reserve policy decision.

Overnight, U.S. stocks fluctuated before ending narrowly mixed. Investors sold off chip stocks as concerns over China's rising semiconductor capabilities coupled with Nvidia's AI infrastructure deals worth more than $750 billion sparked fears of an AI bubble and circular financing, offsetting a broad reprieve from falling oil prices.

In economic news, June durable goods orders rose 0.3 percent in June after tumbling by a revised 4.0 percent in May, missing forecasts and signaling weaker demand.

While the tech-heavy Nasdaq Composite slid 0.2 percent to hit a nearly three-month closing low, the S&P 500 inched up marginally and the narrower Dow added half a percent.

European stocks closed mostly higher on Monday as a late sell-off in technology stocks stifled a rally fueled by plunging oil prices amid easing U.S.-Iran tensions.

The pan-European STOXX 600 ended little changed, giving up early gains. The German DAX rallied 1 percent, while France's CAC 40 and the U.K.'s FTSE 100 both rose by 0.4 percent.