European markets inched higher early Tuesday as investors looked ahead to key U.S. data and corporate earnings. Germany’s DAX rose 0.1%, while the UK’s FTSE 100 also gained 0.1%, but France’s CAC 40 slipped 0.1%. Markets drew confidence from Wall Street’s record-setting session, driven by tech gains, and Japan’s Nikkei hitting an all-time high.

Sentiment was further influenced by political developments, including speculation of an early election in Japan that may lead to more fiscal stimulus. Attention now turns to the U.S. consumer price index data due later in the week. Economists forecast a 2.7% year-over-year rise in CPI, unchanged from November.

Core CPI, which excludes volatile items, is expected to tick up slightly to 2.7%.Banking results from JPMorgan and Bank of New York Mellon will kick off Wall Street’s quarterly earnings season. However, President Trump’s plan to cap credit card rates at 10% adds uncertainty for the sector. Meanwhile, oil prices climbed for the fourth straight session amid ongoing protests in Iran, raising concerns over potential supply disruptions. Brent crude rose 0.5%, and WTI crude gained 0.8%.