European Stocks To Open Higher Following Fed Comments.

As investors consume significant German inflation and U.K. unemployment statistics, European stock markets are anticipated to begin higher on Tuesday, after advances on Wall Street and Asia overnight.

The upbeat finish on Wall Street has boosted sentiment in Europe, with the Dow Jones rising more than 0.6% on signs that the Federal Reserve is nearing the end of its rate rise cycle for the year.

After numerous Fed members warned on Monday that interest rates would have to increase further to limit inflation, but the tightening cycle is nearing its end, Asian equities moved broadly higher in early trade Tuesday, and Europe is set to do the same.

The announcement of U.S. consumer prices on Wednesday may provide further indications about the Fed's anticipated future action, but the emphasis in Europe on Tuesday will be the final German inflation figures for June.

While inflation is obviously reducing in a number of European nations, like Spain, where it has fallen below the European Central Bank's 2% objective, it remains a problem in Germany, the eurozone's largest economy.

In June, German CPI climbed 0.3% month on month and 6.4% year on year, up from 6.1% the previous month.

In other news, the UK unemployment rate increased to 4.0% in May, while the June claimant count increased by almost 25,000, and average wages increased by 7.3% before bonuses.

In business news, Renault is expected to be in the focus on Tuesday after the French automaker struck a joint venture agreement with China's Geely to establish a firm that would build and supply hybrid powertrain engines.

Finally, oil prices increased on Tuesday, supported by the US dollar plunging to a two-month low, making oil cheaper for overseas purchasers, as views grew that the Fed was nearing the end of its rate hiking cycle.

(Sources: investing.com, reuters.com)