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European Shares Seen Higher At Open As Trade War Worries Ease

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European stocks are set to extend gains from the previous session on Tuesday as worries about an imminent trade war eased and investors seemed to have brushed off the inconclusive election result in Italy.

Trade war fears appear to moderate as U.S. President Donald Trump faces growing pressure from political and diplomatic allies to pull back from proposed steel and aluminum tariffs.

Some market participants also view the tariff threats more as a negotiating tactic to get a better deal on NAFTA.

Asian stock markets are broadly higher after Wall Street posted its strongest gains in a week overnight despite rising tensions between the United States and China.

The Dow Jones Industrial Average climbed 1.4 percent to snap a four-session losing streak on Monday even as Trump took to twitter again to defend the tariffs on steel and aluminum imports and a report showed activity in the U.S. service sector grew at a slightly slower rate in February. The tech-heavy Nasdaq Composite surged 1 percent and the S&P 500 added 1.1 percent.

Data from the British Retail Consortium showed earlier in the day that like-for-like sales in the United Kingdom climbed 0.6 percent year-on-year in February. That exceeded expectations for an increase of 0.5 percent and was unchanged from the January reading.

Markets now look ahead to Friday's release of U.S. employment data for clues to the health of the world's largest economy and the rate outlook.

European markets rose on Monday as the euro edged lower and Germany's Social Democratic party voted to join a coalition agreement with Chancellor Angela Merkel.

The pan-European Stoxx Europe 600 index gained 1 percent. The German DAX rallied 1.5 percent, France's CAC 40 index advanced 0.6 percent and the U.K.'s FTSE 100 added 0.7 percent.

by RTTNews Staff Writer

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