European Shares Set To Open On Firm Note

(RTTNews) - European stocks are seen opening higher on Tuesday as investors await the next batch of earnings and any new developments on the trade front.

Tech stocks may rise after Palantir Technologies topped Wall Street's estimates and hiked its full-year guidance, signaling robust demand for artificial intelligence services.

As the U.S. earnings season wraps up, investors now await earnings from Walt Disney and Caterpillar for further direction.

On the trade front, the European Union said it will suspend its two packages of countermeasures to U.S. tariffs due to enter into force on August 7 for six months, following a deal with U.S. President Donald Trump agreed on July 27.

EU officials expect more executive orders to follow this week to formalize the bloc's lower levies for cars and grant exemptions from levies for some industrial goods such as aviation parts.

Meanwhile, the Swiss government said it remained in contact with U.S. authorities about the tariffs and "continues to strive for a negotiated solution," after last week's shock announcement of 39 percent levies on exports to America.

In economic news, Eurozone's PMI release, the producer price index and the U.K.'s latest services PMI will be in the spotlight as the session progresses.

Across the Atlantic, reports on the U.S. trade deficit and service sector activity may garner some attention.

Asian markets followed Wall Street higher on the back of positive earnings reports and U.S. rate cut expectations as the job market softens.

San Francisco Federal Reserve Bank President Mary Daly on Monday said that "every meeting going forward is a live meeting to think about policy adjustments."

The dollar wavered and gold slipped below $3,370 per ounce while oil extended losses for a fourth day on oversupply concerns.

U.S. stocks rose sharply overnight, reversing the steep losses seen in the previous session on jitters about President Trump's new modified tariff rates.

In economic news, data showed factory orders, a key indicator of the health of the manufacturing sector, fell sharply in June as expected.

The S&P 500 rallied 1.5 percent to snap a four-day losing run amid optimism about interest-rate cuts. The tech-heavy Nasdaq Composite surged 2 percent and the Dow advanced 1.3 percent.

European stocks rebounded on Monday after falling by the most in the previous session. The pan European STOXX 600 gained 0.9 percent.

The German DAX climbed 1.4 percent, France's CAC 40 added 1.1 percent and the U.K.'s FTSE 100 rose 0.7 percent.