Peter Nurse 

Investing.com — European stock market are likely to open slightly higher Tuesday. Trading will be muted as global investors wait for key U.S. Inflation data late in the week.

At 02:05 ET (005 GMT), Germany’s contract traded 0.1% higher while France rose 0.1%. The U.K. contract rose 0.2%.

The main focus for investors is now the speed with which central banks withdraw the emergency assistance they provided two years ago following the Covid-19 pandemic that sent the world economy into deep, but brief recession.

Last week’s interest rate increases delivered back-to-back rises for the first times since 2004. The hint at further action was also made. But it’s the U.S. that most investors look most closely at, given the importance of the U.S. economy in driving global growth.

Fed policymakers have guided towards the U.S. central bank raising interest rates in March, and Friday’s strong pointed to the likelihood of an aggressive 50 basis points move. Thursday’s consumer prices release could cement such an idea, with the seen rising 0.5% on the month and 7.3% on the year in January.

The economic data table Tuesday in Europe includes:, and for December. 

The semiconductor industry will dominate the corporate sector after Softbank (T) announced Tuesday that its deal for $66 billion to buy British chip design Arm from Nvidia (NASDAQ 🙂 failed due to regulatory obstacles. It stated that Arm would be going public during the fiscal year ending March 31st 2023.

BNP Paribas, (OTC) will also be the focus of attention after the French bank announced a strong rise in fourth-quarter profit. It was driven by its strength in its domestic market.

After closing lower in seven sessions, oil prices stabilised Tuesday. The market was focusing on Iran and the West later in the session. This could result in lifting sanctions against Iranian oil sales.

Although such an outcome may increase global supply, the talks have been dragging on for over a year now since President Joe Biden was elected. It will be difficult to get both sides to agree.

Investors also will look out for U.S. crude oils supply data from the later in today.

Futures were trading flat at $91.32 per barrel by 2:05 ET. The contract dropped 0.1% to $92.59.   

The price fell 0.1% to $1819.60/oz and traded 0.2% higher at 1.1416