European stocks will look to extend their rally into a second day Tuesday after another record-setting day on Wall Street and a solid session in Japan.
Britain's FTSE 100 is set for a modest 5-point gain at the opening bell, according to financial bookmakers IG, while benchmarks in Germany and France will likely add around 22 and 9 points at the start of trading later this morning, extending gains for the second quarter to 4.67% and 3.67% respectively.
Japan's Nikkei 225 lifted more than 1% in overnight trading to edge closer to a two-year high as a softer yen boosted export-focused shares and tech stocks found favour after driving gains on Wall Street the previous day.
The dollar was also boosted by the U.S. equity market action, as well as upbeat comments on the prospects for the world's biggest economy from New York Federal Reserve President Bill Dudley, and gained 0.05% against a basket of its global peers in overnight trading before easing into the European session to around 97.52.
The pound showed signs of slipping from its recent trading range as Britain completed its first day of exit talks with European Union officials in Brussels and was quoted at 1.2737 at around 06:30 BST.
The fact that Brexit Secretary David Davis, the country's chief negotiator, was reported to have agreed to the EU's agenda - which demands an agreement on the so-called divorce bill between London and Brussels and the rights of EU citizens living in the U.K. before any talks on trade can commence - may convince investors that Britian's hand has weakened as the two-year negotiations begin.
Global oil markets, however, continued to struggle, despite the solid demand backdrop, with prices holding at 7-month lows ahead of estimates of U.S. commercial crude stocks later in the session.
West Texas Intermediate crude futures for July, which fell 1.2% to a November 14 lower in yesterday's session, were little changed at $44.19 each at the start of European trading while Brent contracts for August were marked at $46.91.
Early indications from U.S. equity futures are mixed, but still suggest a second day of gains for the major benchmarks after Monday's record-setting session, which was largely powered by a 1.47% gain for the Nasdaq as investors scooped up cheaper tech giants such as Apple Inc. undefined and Amazon Inc. (AMZN) - Get Free Report after a week of price correction.
The Dow Jones Industrial Average is set to open just a few points higher at the opening bell, with the broader S&P 500 starting off little-changed from last night's close of 2,453.46 points. The Nasdaq may add one or two points to the 87.25 it gained Monday when trading starts later today.