European stocks opened higher Tuesday as investors return to risk markets following solid U.S. data and a modest overnight rebound for the dollar ahead of the Federal Reserve's two-day rate setting meeting.

Britain's FTSE 100 gained at the start of trading, according to financial bookmakers IG, with higher oil and commodity prices offsetting the impact of an elevated pound, which traded at 1.3026 at the start of European trading. Broader European markets are also expected to post solid gains ahead of a key survey of business sentiment from Germany's Ifo Institute later in the session.

Another heavy earnings slate that includes second quarter figures from Dow components Caterpillar (CAT - Get Report) , Du Pont (DDD - Get Report)  and 3M Co. (MMM - Get Report)  as well as Eli Lilly & Co. (LLY - Get Report) , Kimberly-Clark Corp. (KMB - Get Report)  and McDonald's Corp. (MCD - Get Report)  has the potential to significantly alter the tone of the session.

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