Futures indicate European bourses are set for a higher open, with stock markets in the region reopening after holidays on Friday and Monday.
Focus will be on the pan-European STOXX 600, which closed last week at a record high and will look to start the second quarter on the front foot after clocking in a 7% gain in the January-March quarter.
A slew of manufacturing activity data across Europe along with inflation data for Germany will also take the spotlight as investors assess the health of the region’s economy.
Euro zone manufacturing activity is likely to contract in March, according to a Reuters poll, although spotlight will be on whether firms were optimistic for the year ahead. Manufacturing data for March from France, Germany and UK are also due later in the day.
Investors will parse the data to gauge when the European Central Bank may start its interest rate cutting cycle.
A growing number of ECB policymakers have supported rate reductions, with a June meeting shaping up as the most likely time for action.
All 77 economists in a Reuters poll conducted last week expected the ECB to keep the deposit rate unchanged at 4.00% on April 11. Roughly 90%, 68 respondents, forecast that the first cut would come in June.
