European stocks are seen opening on a tepid note Tuesday as a surge in oil prices on prospects for strength in summer demand revived worries about inflation and interest rates.
French political and policy uncertainty may also weigh on markets ahead of a second-round vote on July 7.
Meanwhile, there are expectations of Donald Trump winning the U.S. presidency after the U.S. Supreme Court ruled on Monday that Trump cannot be prosecuted for actions that were within his constitutional powers as president.
In a 6-3 majority ruling, the court stated that presidents are entitled to a degree of immunity from criminal prosecution for any \'official\' act.
Shortly after the decision was released, U.S. President Joe Biden said the court had done a \"terrible disservice\" to the American people.
Trump posted on his social media: \"BIG WIN FOR OUR CONSTITUTION AND DEMOCRACY. PROUD TO BE AN AMERICAN!\".
In economic news, Eurostat is slated to issue euro area flash inflation figures for June later in the day.
Overall inflation is expected to ease to 2.5 percent from 2.6 percent in May and the core rate is seen at 2.8 percent, down from 2.9 percent a month ago.
European Central Bank board members Luis de Guindos and Frank Elderson are set to speak at the ECB Forum on Central Banking 2024 in Sintra, Portugal.
Investors also await comments from Federal Reserve Chair Jerome Powell and ECB President Christine Lagarde for additional clues on the rate outlook.
The U.S. ISM services PMI and employment data will be watched closely this week amid rising bets of a Fed rate cut in September.
Asian stocks traded mixed, with Chinese and Hong Kong markets rising after data showed the downturn in China\'s residential real estate sector slowed further in June.
Japan\'s Nikkei rose more than 1 percent to top 40000 points for the first time since April 4 as semiconductor stocks surged amid the AI boom.
The dollar strengthened and gold was slightly lower while oil extended gains after climbing nearly 2 percent in the overnight U.S. trading session.
U.S. stocks closed higher overnight as data showed manufacturing contracted for a third straight month in June and prices paid by manufacturers dropped to a six-month low - adding to bets the Fed will start reducing interest rates in September.
The Dow edged up 0.1 percent, the S&P 500 added 0.3 percent and the tech-heavy Nasdaq Composite surged 0.8 percent.
European stocks gained on Monday, the euro hit its strongest level since mid-June and the premium investors demand for holding France\'s bonds plunged, as initial results from France\'s election showed a smaller lead for the far-right than expected.
The pan European STOXX 600 rose 0.3 percent. The German DAX inched up 0.3 percent, France\'s CAC 40 rallied 1.1 percent and the U.K.\'s FTSE finished marginally higher.