European stocks cautious opening

What happened: European stocks experienced a cautious opening on Tuesday, driven by investors digesting regional economic data and looking ahead to U.S. data for Fed rate clues. However, they closed mostly higher. On Wednesday, stocks were expected to open lower due to U.S.-Iran tensions and anticipation of U.S. inflation data. The DAX tumbled on Tuesday due to weak PMI data and U.S.-Israel peace pact uncertainty.

Market impact: Tech stocks and auto stocks, such as BMW, were negatively affected. The mood remained cautious, with investors awaiting the U.S. Federal Reserve's monetary policy announcement. Energy stocks like Brent crude futures traded higher due to Middle East concerns. U.S. President Trump's comments on inflation pushed against rate-hike bets.

What to watch next: Key U.S. inflation data and the U.S. Federal Reserve's interest-rate decision on Wednesday will provide new insights into market expectations for future interest rates. Additionally, investors will keep an eye on the U.S.-Iran conflict's developments and their potential impact on energy prices.