European stocks notched solid early gains Tuesday as investors eased back into the tech sector and snapped up cheap shares after a two-day selloff and powered broader markets higher amid firming economic data and receding political risks.

The region-wide Stoxx Europe 600 index, the broadest measure of share prices, was marked 0.53% higher in the opening hour of trading as each of its subsectors traded firmly in the green. Tech stocks, which led declines in Monday's sell-off, were marked 1.2% higher, led by gains for Apple Inc's (APPL) German-listed shares and rebounds for companies in its supply chain.

Britain's FTSE 100 added around 25 points, or 0.34%, in the opening hour but gains were somewhat muted by a firmer pound, which rose to 1.2863 against the U.S. dollar amid reports that Prime Minister Theresa May will find enough support to cut a deal with lawmakers in Northern Ireland to allow her to form a workable parliamentary majority.

Further pressure could come later today, however, in the form of May inflation data from the Office for National Statistics, which is expected to show consumer prices accelerating at a four-year high of 2.7%. The reading falls just two days before the Bank of England's next rate decision Thursday.

In Europe, the DAX performance index gained 0.4% while the CAC-40 added 0.5%, with further upside possible when the ZEW Institute publishes its monthly benchmark of investor sentiment at 10:00 BST.

Overnight in Asia, tech stocks remained in focus, but weren't the target of the same aggressive selling witnessed Monday, with firms linked to Apple's supply chain, such as Foxconn, falling around 0.5%.

Tech names look to bounce back on Tuesday.
Tech names look to bounce back on Tuesday.

The region-wide MSCI Asia ex-Japan index was marked 0.56% higher by 06:30 BST while the Nikkei 225 in Japan edged 0.05% lower amid some accelerated selling into the close to end the session at 19,898.75 points

The U.S. dollar was largely unchanged during Asia hours and traded at 97.24 against a basket of global currencies as investors adopt a cautious tone ahead of the Federal Reserve's two-day rate setting meeting which begins later today. However, the dollar index gave back gains as European currencies found support and drifted 0.13% lower to 97.01 by 09:00 BST.

Analysts have almost unanimously priced in a 0.25% hike in the Fed's main lending rate and will focus on chairwoman Janet Yellen's statement Wednesday for clues as to the pace and frequency of policy tightening between now and the end of the year.

Early indications from U.S. futures prices point to a modest rebound on Wall Street, as well, with the Nasdaq poised for a 0.2% gain after leading losses for American markets over the past two sessions. The Dow Jones Industrial Average is priced to gain around 0.18% at the opening bell with the broader S&P 500 likely to notch a similar percentage advance.

What's Hot on TheStreet

Respect the stock charts: Don't feel too relieved by volatile tech name Nvidia (NVDA - Get Report) finishing in the green on Monday after a violent selloff.

Nvidia underwent a "key reversal" on Friday that could send the stock plunging another 36%, BMO technical analyst Russ Visch said in a new note. Visch points out that normally, these pullbacks tend to lead to the stock falling back to its 200-day moving average. In the case of Nvidia, the 200-day moving average is $96.70, or $36% below Monday's closing price of $149.97. "Considerable downside risk exists here," said Visch.

On Friday, shares of Nvidia were off to another big rally, hitting new all-time highs of $168.50 following an analyst pontificating the stock could surge to $300. But the party abruptly ended Friday afternoon and continued into most of Monday's trading session. The reversal in one of the hottest tech stocks around spooked the market, pressuring shares of other high-flyers in the space such as Amazon (AMZN - Get Report) and Apple (AAPL - Get Report) .

Apple and innovation: The reality of the here and now is that the public and would-be buyers of Apple's stock harbor greater doubts about Apple's ability to innovate than in many years, reports TheStreet. Apple did nothing to quiet those concerns by introducing its new voice activated speaker, sources explained to TheStreet.

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.

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