Investors take in vital earnings from companies like oil giant BP, further economic data, and the most recent remarks from Fed chief Jerome Powell.

Tuesday's opening of European stock markets is anticipated to be somewhat firmer as investors take in significant corporate earnings from companies like oil giant BP, further economic data, and the most recent remarks from Federal Reserve chief Jerome Powell.

With the world's attention on Fed Chair Jerome Powell's appearance at the Economic Club of Washington, D.C. later in the day, European equities are expected to recover from Monday's losses on Tuesday.

His remarks on the U.S. economy and monetary policy will be carefully scrutinised. The strength of Friday's U.S. employment data rocked stock markets since it implied the Fed had more capacity to keep raising interest rates.

In Europe, economic statistics for December on French commerce, Spanish industrial production, and U.K. home prices are all scheduled for publication.

Prior to this, German industrial production shrank by 3.1% on the month in December, following a 0.2% increase in November.

This was disappointing because statistics released on Monday indicated that German industrial orders increased in December, rising by 3.2% on a monthly basis, reversing a significant decline of 4.4% in November that had been upwardly corrected.

A jump in energy prices following Russia's invasion of Ukraine helped BP declare a record profit of $28 billion on Tuesday. The business also hiked its dividend by 10% as a symbol of confidence in the market's sustained strength.

According to BP, its definition of net income for the fourth quarter came in at $4.8 billion, falling short of analyst predictions of a $5 billion profit.

This contrasts with $8.2 billion in the third quarter of 2022 and $4 billion a year earlier.

In other corporate news, BNP Paribas, the largest lender in the Eurozone, reported a lower-than-anticipated net profit for the fourth quarter as an increase in its risk cost and higher operational costs offset an increase in its trading sales.

Holcim will also appear in the limelight when the Swiss cement producer revealed intentions to buy Duro-Last, a manufacturer of roofing systems, for $1.29 billion.

Tuesday's increase in oil prices was aided by ongoing optimism for this year's resurgence in demand from China, the world's largest consumer of crude oil.

In preparation of rising demand from the area, particularly from China, Saudi Arabia, the top oil exporter in the world, boosted prices for its flagship crude for Asian clients late Monday for the first time in six months.

Supply disruptions also contributed to the mood. Turkey stopped exports following a significant earthquake, and the Johan Sverdrup field in Norway had a power outage.

(Investing.com, Reuters.com)