European markets head for higher open following gains in U.S.

  • London's FTSE is seen opening 29 points higher at 6,576, Germany's DAX 77 points higher at 13,873, France's CAC 40 up 19 points at 5,613 and Italy's FTSE MIB up 67 points at 22,228, according to IG.

European stocks are expected to open higher on Tuesday following a rally in U.S. stocks on Monday.

London's FTSE is seen opening 29 points higher at 6,576, Germany's DAX 77 points higher at 13,873, France's CAC 40 up 19 points at 5,613 and Italy's FTSE MIB up 67 points at 22,228, according to IG.

Sentiment in Europe has been buoyed by a rally in U.S. stocks on Monday that came after President Donald Trump signed a $900 billion coronavirus relief package into law; the measure includes a direct payment of $600 to most Americans.

Trump had previously demanded a $2,000 direct payment days before the signing. The House voted Monday to increase the second round of federal direct payments to $2,000, leaving it up to the GOP-controlled Senate.U.S. stock futures were higher early Tuesday morning following the rally.

Positive sentiment in Europe comes after a Brexit trade deal was agreed between the EU and U.K. on Christmas Eve.On Monday, the 27 ambassadors from EU member nations formally approved the deal that will be implemented on Jan 1. 

Meanwhile, stocks in Asia-Pacific were mixed in Tuesday trade following the gains on Wall Street.

In Japan, the Nikkei 225 gained 1.96% — trading at levels not seen since August 1990, according to data from Refinitiv. Shares of index heavyweight Fast Retailing and conglomerate Softbank Group gained more than 3% each. The Topix index advanced 1.36%.

There are no major earnings or data releases Tuesday.

– CNBC's Fred Imbert and Eustance Huang contributed to this market report.

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