European stocks may open higher on Tuesday as traders bet a full-fledged trade war between the U.S. and its trading partners is unlikely.

Asian stocks are broadly higher for the third day running and oil extended Monday's gains on escalating concerns about potential supply shortages, while the dollar index held steady in Asian trading.

Gold prices inched up amid geopolitical tensions after U.S. President Donald Trump said Beijing might be seeking to derail efforts aimed at denuclearizing North Korea.

The pound held up against the dollar after tumbling on Monday as the departure of two key eurosceptic ministers raised worries about a "hard Brexit".

European Central Bank policymaker Ewald Nowotny has warned that Britain's ramshackle exit from the European Union could damage economic growth in the euro zone.

Elsewhere in Germany, Chancellor Angela Merkel signed a raft of economic cooperation agreements with the Chinese prime minister and said both countries are committed to multilateralism and a rules-based global trade order.

U.S. stocks rose for a third straight session on Monday as economic optimism helped investors brush aside trade war worries. The Dow rallied 1.3 percent, while the S&P 500 and the tech-heavy Nasdaq Composite rose around 0.9 percent each.

European also closed firmly in positive territory on Monday after the release of positive data from the United States, Germany and France.

The pan-European Stoxx Europe 600 index advanced 0.6 percent. The German DAX and France's CAC 40 index both rose by 0.4 percent while the U.K.'s FTSE 100 added 0.9 percent.

by P2PNews Staff Writer

editorial@p2pnews.com

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