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At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.1% higher, CAC 40 futures in France climbed 0.2% and the FTSE 100 futures contract in the U.K. traded largely unchanged.
Data released earlier Tuesday showed that the U.K. unemployment rate rose to 4.3% in July, from 4.2% the previous month, while the August claimant count rose just 900 in August.
However, despite these signs of a weakening of the U.K. labor market, average earnings still rose 7.8%, suggesting the Bank of England still has to contend with wage-based inflationary pressures when it meets next week.
BOE policymaker Catherine Mann warned late Monday that it’s too soon to stop raising rates, and the central bank is widely expected to hike by another 24 basis points.
Ahead of the BOE, the ECB meets later this week amid a great deal of uncertainty over the outcome as price pressures remain elevated while data shows economic activity is now slowing sharply.
The latest Spanish inflation data is due later Tuesday, and is expected to show an uptick in consumer prices in August. The monthly CPI release is expected to come in at 0.5%, up from 0.2% in July, while the annual figure is seen at 2.6%, up from 2.3%.
The ECB has raised rates at each of its past nine meetings and policymakers are now debating whether to raise the deposit rate again, to 4%, or pause.
There’s also inflation data due this week in the U.S., with Wednesday seeing the release of the August consumer price index.
The Federal Reserve is widely expected to forgo a hike again next week, but policymakers will be keen to see that inflation is playing ball, with core CPI expected to fall to 4.3% growth on an annual basis.
Oil prices rose Tuesday, maintaining the positive tone generated by Saudi Arabia and Russia extending their voluntary supply cuts to the end of the year ahead of the release of the monthly OPEC report.
Traders are keenly awaiting a monthly report from the Organization of Petroleum Exporting Countries, due later in the day, especially for forecasts of Chinese demand, amid dwindling bets that the country will drive oil demand to record highs this year.
Industry data on U.S. crude stocks from the American Petroleum Institute are due later in the session, and are expected to continue the recent run of draws.
By 02:00 ET, the U.S. crude futures traded 0.4% higher at $87.61 a barrel, while the Brent contract climbed 0.3% to $90.88, continuing to trade above $90 a barrel after reaching this level last week for the first time in 10 months.
Additionally, gold futures fell 0.2% to $1,942.45/oz, while EUR/USD traded 0.1% lower at 1.0737.
