FX.co ★ European Markets Poised for Modest Gains

European equity markets were poised for a slight uptick at the opening on Tuesday as investors appeared unfazed by the recent escalation in tariff tensions. This follows US President Donald Trump's announcement of his intention to increase tariffs on imported steel and aluminum to 50%, an action that sparked warnings of potential retaliatory measures from the European Union. Simultaneously, market participants were eagerly anticipating the release of the latest Eurozone inflation data expected later today. Economists predict a further slowdown in inflation, trending towards the European Central Bank's 2% target for May. This development may bolster the argument for a 25 basis point interest rate reduction at the ECB's forthcoming policy meeting. As indicated by premarket activity, futures on the Euro Stoxx 50 and Stoxx 600 inched up by approximately 0.1%, suggesting a cautiously positive commencement of the trading session.