European stocks head for higher open as volatility grips global markets

European stocks are expected to open higher on Tuesday as investors in the region appeared to shrug off volatility in global markets at the start of the week, and concerns over Ukraine.

The U.K.’s FTSE index is seen opening 21 points higher at 7,328, Germany’s DAX 79 points higher at 15,127, France’s CAC 40 up 35 points at 6,842 and Italy’s FTSE MIB up 267 points at 26,137, according to data from IG.

The higher open for European stocks comes after they tumbled on Monday, following wild volatility on Wall Street. Investors are now bracing themselves for an update from the U.S. Federal Reserve and remain focused on tensions between Ukraine and Russia.

The Federal Open Market Committee starts its two-day meeting on Tuesday at which it will decide on the next steps for U.S. monetary policy. An interest rate decision is slated for Wednesday at 2 p.m. ET.

Rising inflation is a major concern for the U.S. central bank and investors will listen closely to hear how worried the Fed actually is. Chairman Jerome Powell is due to brief the media after the FOMC releases its statement. The Fed is not expected to begin hiking rates just yet, but the central bank is expected to maintain a path toward tighter policy this year as it fights the highest inflation in decades.

Markets are also nervous that there could be an imminent military conflict between Ukraine and Russia although high-level talks to avert a confrontation are ongoing.

President Joe Biden spoke with European leaders Monday afternoon as the U.S. considers deploying military personnel and equipment to the region amid the rapidly deteriorating security situation at Ukraine’s border with Russia.

In Asia-Pacific markets overnight, Japan and Hong Kong stocks dropped as much as 2% as regional markets tumbled after a volatile session on Wall Street. U.S. stocks had sold off earlier in the trading session Monday but mounted a dramatic comeback as investors stepped in to buy beaten-up tech shares. U.S. stock index futures fell in early trading Tuesday.

Earnings come from Ericsson on Tuesday and data releases include Germany’s Ifo business climate data for January and U.K. business optimism figures from the Confederation of British Industry.

— CNBC’s Weizhen Tan, Abigal Ng and Pippa Stevens contributed to this report.