French stocks traded higher on Tuesday while the dollar edged lower ahead of the televised U.S. presidential debate later today and inflation readings due later in the week that could influence expectations for the interest rate outlook.
Upcoming ECB and Fed meetings also remained on investors radar.
Analysts remain divided over whether the Federal Reserve would deliver a regular 25 basis point (bps) rate cut or an outsized 50 bps one at its Sept. 17-18 policy meeting.
The benchmark CAC 40 was up 31 points, or 0.4 percent, at 7,456 after rallying 1 percent the previous day.
In corporate news, Capgemini soared 7 percent after Oracle beat on the top and bottom lines for the first quarter and announced it would bring database services to cloud infrastructure market leader Amazon Web Services.