European Shares Seen Up As EU, India Conclude FTA Talks

(RTTNews) - European stocks are seen opening broadly higher on Tuesday, with trade tensions, upcoming Federal Reserve rate decision and mega-cap tech earnings likely to be in focus.

In the United States, companies accounting for roughly a third of the S&P 500's market capitalization are due to unveil their quarterly earnings results this week.

Amid AI hype and concerns about stretched valuations, Apple, Meta, Microsoft and Tesla are slated to report their quarterly results later this week.

The U.S. Federal Reserve is expected to hold interest rates steady at the end of a two-day policy meeting on Wednesday, with investors looking for clues on the Fed's future rate path. President Trump is expected to nominate a new Federal Reserve Chair within days.

Meanwhile, India and the European Union have concluded negotiations on a comprehensive free trade agreement after nearly 20 years.

Among the key announcements expected are cuts in tariffs on European cars and wine, as well as on Indian electronics and textiles.

According to European Council President Antonio Costa, the "mother of all trade deals" sends a significant political message against rising tariffs and protectionism amid global uncertainties triggered by Trump's policies.

Asian markets were broadly higher as data showed profits at China's industrial firms rose 0.6 percent year-on-year in 2025 after three years of declines.

After U.S. President Trump threatened to hike tariffs on goods imported from South Korea to 25 percent, citing Seoul's failure to ratify trade deal, the ruling Democratic Party reportedly said it will pass a planned investment bill in the U.S. by February.

The Japanese yen held firm after two straight sessions of sharp gains amid speculation of possible joint currency intervention.

The dollar traded lower on geopolitical concerns while gold jumped over 1 percent to scale a new record high above $5,060 an ounce due to a looming U.S. government shutdown and concerns over President Trump's policies.

Oil prices traded lower despite a massive winter storm hitting crude production and affecting refineries on the U.S. Gulf Coast.

Overnight, U.S. stocks closed higher despite the impasse over DHS funding after a fatal ICE shooting in Minneapolis.

The Dow climbed 0.6 percent ahead of a Fed rate decision and major tech earnings due later in the week.

Investors cheered data that showed U.S. orders for durable goods increased in November by the most in six months.

The S&P 500 added half a percent and the tech-heavy Nasdaq Composite gained 0.4 percent, rising for a fourth-straight day, the longest winning streak since the start of 2026.

European stocks ended mixed on Monday after a choppy ride amid geopolitical and trade tensions.

The pan European Stoxx 600 rose 0.2 percent. While France's CAC 40 slid 0.2 percent, the German DAX and the U.K.'s FTSE 100 both inched up by 0.1 percent.