European markets set to open broadly higher as geopolitics remains in focus

The U.K.’s FTSE index is seen opening flat, Germany’s DAX and France’s CAC 40 up 0.2%, respectively, and Italy’s FTSE MIB is expected to open 0.14% higher, according to data from IG.

European stocks began the new trading week in positive territory as investors weighed geopolitical developments in Iran, and the launching of a criminal investigation into the U.S. Federal Reserve Chair Jerome Powell.

Powell said Sunday that the investigation was another attempt by President Donald Trump to influence the central bank’s monetary policy and that he would not bow to the pressure. His term as chair is due to end in May.

Market watchers are also keeping an eye on the developments in Iran this week after widespread protests have been met with a violent crackdown by the Iranian authorities.

Trump is reportedly weighing options to take action against Iran and on Monday said that any country doing business with Iran will face a 25% tariff “on any and all business being done with the United States of America.”

The consumer price index report is expected to give a fuller picture of prices after disruptions caused by the prolonged U.S. government shutdown last fall. Economists expect the report to show prices rose 2.7% in the twelve months ending in December, according to Dow Jones consensus estimates.

There are no major earnings or data releases in Europe on Tuesday.

— CNBC’s Pia Singh contributed to this market report.