European Shares Set To Follow Asian Peers Higher In Cautious Trade

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European stocks are likely to open higher on Tuesday as investors cheer an extended rally on Wall Street, fueled by surging technology stocks.

Microsoft Corp. and Intel Corp. will unveil their earnings results this week that will help shape the outlook for the technology sector.

Asian markets were seeing modest gains in thin holiday trade, though Japan's Nikkei climbed around 1.7 percent as exporters surged on a weaker yen.

The dollar index traded weak and Treasury yields extended recent declines amid bets for less-aggressive rate hikes from the Federal Reserve.

Treasury Secretary Janet Yellen said she's encouraged by a strong labor market and progress on inflation over the past six months.

Oil prices held steady in Asian trade while gold was marginally higher as investors awaited more U.S. data this week for additional clues on the rate outlook.

Reports on durable goods orders, fourth quarter GDP, new home sales and personal income and spending are due this week.

U.S. stocks jumped overnight to extend big gains from Friday as investors reacted to a stream of corporate news and earnings results.

The tech-heavy Nasdaq Composite climbed 2 percent and the S&P 500 rose 1.2 percent to reach their best closing levels in over a month while the Dow added 0.8 percent.

European stocks eked out modest gains on Monday amid hopes that inflation could be past its peak.

The pan European STOXX 600 advanced half a percent. The German DAX and France's CAC 40 index both gained around half a percent while the U.K.'s FTSE 100 edged up 0.2 percent.

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