European stocks are expected to open lower Tuesday following a weaker session on Wall Street that was marred by concerns over the failure of Senator Mitch McConnell's healthcare reform bill.

Britain's FTSE is set to slide around 0.33% at the opening bell, according to financial bookmakers IG, with similar but more modest declines anticipated for markets in Germany and France.

Currency markets will likely be in focus this morning with the pound trading at a 10-month high of 1.3093 against the U.S. dollar ahead of the Office for National Statistics' reading of June inflation at 09:30 London time.

The pound has been steadily edging higher against the dollar since Bank of England Governor Mark Carney hinted that the Bank's tolerance for faster inflation may be limited and that he and his colleagues could contemplate removing stimulus - and thus strengthening the currency - if the broader economy were to show signs of improvement.

The euro was also marked noticeably higher against the dollar at 1.1538, the highest in 14 months, as investors prepare for Thursday's rate-setting meeting from the European Central Bank in Frankfurt, where president Mario Draghi may signal a pullback from the Bank's quantitative easing program as soon as this fall.

Overnight in Asia, the broadest measure of regional stocks, the MSCI Asia ex-Japan index, eased from a two-year high while Japan's Nikkei 225 opened for its first day of trading from yesterday's holiday and promptly fell 0.6% into the close of trading.

Wall Street's late slump was pegged, in part, on news that two Republican Senators withdrew support for McConnell's attempt to repeal the Affordable Care Act, known as 'Obamacare'. With only a two-seat majority in the upper chamber, the chances of passing the re-written bill look slim, which makes the odds of successful tax reform less likely between now and the end of the year. 

The prospect elicited a Twitter response from President Donald Trump late Monday.

Republicans should just REPEAL failing ObamaCare now & work on a new Healthcare Plan that will start from a clean slate. Dems will join in!

— Donald J. Trump (@realDonaldTrump) July 18, 2017

Global oil prices drifted lower again in overnight trading, with West Texas Intermediate crude futures for August delivery marked 3 cents per barrel lower at $45.99 while Brent contracts for September delivery, the global benchmark, were unchanged from Monday's New York close at $48.42.

Wall Street is slated to open little-changed from Monday's closing levels, with investors keying on earnings from Johnson & Johnson (JNJ) , Goldman Sachs (GS) , Harley-Davidson (HOG) , Lockheed Martin (LMT) and Bank of America (BAC) .

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