Euro zone inflation data to be closely watched as European markets begin October trading.

European stocks are predicted to commence October trading with an optimistic outlook, despite ending September with a melancholic tone.

According to IG's data, the U.K.'s index has opened 23 points higher at 8,261, Germany's index is up 53 points at 19,394, France's index is up 23 points at 7,660, and Italy's index has opened 117 points higher at 34,128.

Despite European stocks closing lower on Monday, with all sectors and major bourses in negative territory, the upbeat start to October remains.

The focus of investors on Tuesday will be on preliminary inflation data from the euro zone for September, particularly the release of the harmonized German inflation data on Monday, which showed the country's consumer price index eased to 1.8% in September, down from 2% in August. This reading was forecast to come in at 1.9%, according to a Reuters poll of economists.

The ECB's chances of another interest rate cut may increase due to the recent drop in the harmonized inflation rate in France and Spain, which fell below the 2% target in September.

On Monday evening, the S&P 500 ended September with a record close, resulting in little change in U.S. stock futures.

If the economy performs as anticipated, Federal Reserve Chair Jerome Powell expects two more rate cuts this year, each being a quarter percentage point. However, he clarified that the central bank is not following a predetermined course for its next steps in rate policy.

Some Asian markets, including South Korea, Hong Kong, and mainland China, were closed for a public holiday on Tuesday, while mainland China will remain closed for the rest of the week during the Golden Week holiday.