European stock markets are anticipated to begin broadly flat on Tuesday, with concern regarding US debt limit discussions dampening on activity.

European stock markets are anticipated to begin broadly flat on Tuesday, with concern regarding US debt limit discussions dampening on activity prior to the publication of the latest European industrial sector surveys.

US President Joe Biden and House Speaker Kevin McCarthy closed talks late Monday with no conclusion on a plan to extend the US government's $31.4 trillion debt cap.

The negotiations produced some signals of progress, with McCarthy describing the conference as "productive," but there are less than two weeks until a probable first-ever US government default, which would shake financial markets and possibly lead to a worldwide crisis.

For the time being, equity investors are apprehensive but unfazed, in part because most are sure a deal will be made, although volatility might escalate as the June 1 deadline near.

Back in Europe, attention will be focused on the region's preliminary PMI results for May, which are extensively followed indicators of confidence in both the manufacturing and service industries.

Better-than-anticipated PMI surveys aided confidence in April, and another favourable picture of the services sector is likely to compensate for weak manufacturing.

The European earnings season is winding down, but Julius Baer is set to disclose an interim report that will likely reveal how much the Swiss wealth manager benefits from UBS's acquisition of ailing competitor Credit Suisse earlier this year.

Oil prices rose on Tuesday as the start of the driving season in the United States approached, but gains were restricted by concerns about a potential US debt default.

(investing.com, reuters.com)