European stocks traded firmly in the green early Tuesday as investors regained some optimism for tax cuts and fiscal stimulus from President Donald Trump and focused on improving fundamentals in the Eurozone economy.
The region-wide Stoxx Europe 600 index was marked 0.3% higher in the opening 30 minutes of trading, boosted by banking sector and basic resource shares. Britain's FTSE 100 was also trading higher, rising around 25 points to 7,315.2, although gains were somewhat limited by a stronger pound, which was quoted 0.1% higher at 1.2570 against the U.S. dollar.
Germany's DAX performance index traded 0.6% higher at 12,059.5 points while France's CAC-40, boosted by Credit Agricole (+2%) and Peugeot (+1.6%) was marked 0.23% higher.
Outside of the major markets, Ericsson (ERIC - Get Report) shares were a significant mover, falling 3.5% to SEK56.99 each after it said it will take a much larger-than-expected restructuring hit as it seeks to steady its finances and realign its business model under new CEO Borje Ekholm.
The solid overall start follows gains in Asia trading overnight that were, again, supported by a weaker U.S. dollar, which continued to trade at early November lows after attempting a rebound in late New York trading on Tuesday. With the dollar index, a measure of the greenback's strength against a basket of six global currencies, trading at 99.02, investors moved cash into emerging market stocks and raw commodities, boosting benchmarks around the region.
The MSCI Asia ex-Japan index was marked 0.57% higher by 06:45 GMT while Japan's Nikkei 225 rebounded from multi-week lows Monday to end the session 1.14% to the good at 19,202.87 points.
The weaker greenback has helped lift global oil prices from multi-month lows, offsetting market concerns that rising U.S. production levels are more than absorbing the impact of OPEC-agreed output cuts.
WTI futures for May delivery were marked 24 cents per barrel higher at $47.97 while Brent contracts for the same month, the global benchmark, were seen 16 cents higher at $50.91.
The Dow Jones Industrial Average ended Monday in the red, its eighth day of losses in a row and its longest losing streak since August 2011. Stocks were under pressure for much of the day as Wall Street contemplated the way forward for the Trump White House after its defeat on health care reform.
The Dow fell 0.22%, or by 45 points, the S&P 500 was down 0.10%, and the Nasdaq added 0.20%. However, stocks had seen far worse losses earlier in the day with Dow down by more than triple digits.
Early indications from U.S. futures suggest the Dow could snap its 8-day losing streak with a 25 point gain at the start of trading, while the S&P 500 is likely to rise 4.25 points and the Nasdaq 15.2 points.