The German DAX is positioned to attempt a recovery at the open, buoyed by robust performance in Asian and US markets overnight.
The positive global backdrop provides a supportive environment for European equities to extend recent gains, shifting sentiment away from the cautious tone that characterized earlier sessions.
This potential rebound follows a solid performance on Monday, when the DAX rose 1.3% to close at 24,956 points.
That advance was largely driven by investor relief following a reported framework agreement between the United States and Iran, which signaled a potential de-escalation of geopolitical tensions.
The diplomatic breakthrough helped ease risk aversion across European markets, providing a foundation for today's trading session.
However, the primary focus for traders will be the release of German inflation data, which stands as the most significant event on the day's calendar.