(RTTNews.com) - European stocks may open higher on Tuesday as Brent crude oil prices extended gains for a sixth day and a surge in U.S. bond yields pushed the value of the dollar higher against other major currencies.
Oil prices hit their highest level since late 2014 on expectations of renewed U.S. sanctions against Iran and hopes that OPEC would extend its production cap pact.
Asian stocks rebounded from near two-week lows to trade mostly higher even as tech stocks continued to slide.
Traders remained focused on trade tensions between the U.S. and China ahead of a potential meeting in Beijing between officials from the world's largest and second-largest economies.
The European Central Bank reviews its monetary policy on Thursday and it is likely that the central bank will temper expectations for a quick exit from its massive stimulus program.
On the U.S. earnings front, Google's parent company Alphabet surpassed analysts' expectations for its fiscal first quarter, while Whirlpool Corp's first-quarter earnings and sales came in below expectations.
Online brokerage TD Ameritrade Holding Corp's quarterly earnings narrowly missed Wall Street forecasts.
3M, Caterpillar, Coca-Cola, Harley-Davidson, JetBlue, Lockheed Martin and Travelers are among the companies due to report their earnings results before the start of trading later today.
Overnight, U.S stocks ended on a lackluster note as rising bond yields triggered concerns the Federal Reserve will accelerate its pace of interest rate hikes. Investors also geared up for a deluge of major earnings reports.
The Dow Jones Industrial Average slid 0.1 percent to end lower for the fourth consecutive session and the tech-heavy Nasdaq Composite shed 0.3 percent while the S&P 500 inched up marginally.
European markets hit 10-week highs on Monday as financials gained ground on rising bond yields and ahead of the upcoming policy decision from the European Central Bank.
The pan-European Stoxx Europe 600 index inched up 0.4 percent. The German DAX rose 0.3 percent, France's CAC 40 index gained half a percent and the U.K.'s FTSE 100 added 0.4 percent.
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