European stocks traded higher Tuesday as global markets continued to rally in the wake of Emmanuel Macron's victory in the first round of Sunday's presidential elections in France and improving corporate earnings, but momentum faded by mid-day as investors prepared for a slate of U.S. corporate earnings.

U.S. stocks are poised to extend yesterday's rally, which saw the Dow Jones Industrial Average add 216 points, or 1.05%, by the close of trading and the broader S&P 500 gain 25.46 point, or 1.08%. The Nasdaq added 75.3 points, or 1.24%, to end the session at a record high 5,983.82 points.

Early indications from U.S. futures prices suggest the Dow will gain around 37 points at the open, while the S&P is expected to add around 2 points.

Sentiment for the remainder of the week is likely to hinge upon the strength of corporate earnings reports, with around 190 S&P 500 companies reporting in what is expected to be the most active week in a least a decade. Caterpillar Inc. (CAT - Get Report) , DuPont (DD - Get Report) , Lookheed Martin Corp. (LMT - Get Report) , 3M (MMM - Get Report) , McDonald's Corp. (MCD - Get Report) , Coca-Cola Co. (KO - Get Report) and Eli Lilly & Co. (LLY - Get Report) are just handful of bluechip names publishing first quarter earnings this morning.

Investors are also primed for details on a comprehensive tax reform proposal from U.S. President Donald Trump, which he said in a Tweet last week would be available on Wednesday.

In Europe, Germany's DAX performance index backed away from the all-time high of 12,456.18 points it reached Monday, falling around 6 points by mid-day even as drugmakers Fresenius SE & Co KGaA  (FSNUY) and Merck KGaA (MKGAY) topped gainers after the former purchased U.S.-based generics maker Akorn Inc for $4.75 billion and bought Merck's biosimilars division.

SAP SE (SAP - Get Report) shares were also a mover of note, edging higher after it posted weaker-than-expected first quarter earnings but held on to improved full year revenue and profit targets as its cloud subscriptions showed "strong momentum".

SAP shares were marked 0.31% higher at €93.44 each Frankfurt Tuesday, extending their three-month gain to just over 10%.

In Paris, the CAC-40 was little changed from its near 9-year high, with LVMH Moet Hennessy Louis Vuitton SE (LVMUY) shares leading gainers after it said it would buy out the minority interest held by Christian Dior SA (CHDRY) in a €12.1 billion ($13.16 billion) deal it said would lift its earnings profile.

LVMH shares gained more than 4% by mid-day to change hands at a record €223.75 each after hitting a record high €225.20 earlier in the session. Dior shares were marked 11.82% higher at €253.90.

Britain's FTSE 100 was marked 18 points, or 0.25% higher at 7,282 points , with gains held down by weaker mining and basic materials stocks and a still-elevated pound sterling, which gained 0.1% against the dollar to trade at 1.2807.

Overnight in Asia, the momentum in global equity markets carried over into the region for the second consecutive session, with the MSCI Asia ex-Japan benchmark rising 0.77% and Japan's Nikkei 225 adding around 1.1% into the close to end the session past the 19,000 mark for the first time since March 30.