European stocks begin the day with a slight rise as markets evaluate the effects of Trump 2.0.

• On Tuesday, European stocks are predicted to open slightly higher, allowing traders to process the first executive orders signed by newly-elected U.S. President Donald Trump on Monday.
• According to IG's data, the U.K.'s FTSE index is expected to open 10 points higher at 8,531, Germany's DAX to rise 4 points at 21,004, France's CAC to increase by 7 points at 7,740, and Italy's FTSE MIB to climb 44 points at 36,326.

On Tuesday, European stocks are predicted to open slightly higher, allowing traders to process the first executive orders signed by newly-elected U.S. President Donald Trump on Monday.

According to IG's data, the U.K.'s index has opened 10 points higher at 8,531, Germany's index is up 4 points at 21,040, France's index is 7 points higher at 7,740, and Italy's index has increased by 44 points to 36,326.

Following his inauguration as the 47th president of the U.S., Trump signed some of his first executive orders before an audience of 20,000 supporters at the Capital One Arena in Washington. Global investors will be assessing the potential impact of Trump's second term in office.

Trump granted "full pardons" to about 1,500 individuals accused of involvement in the Jan. 6, 2021 attack on the U.S. Capitol, and he also signed an executive order that temporarily halted the implementation of a law prohibiting TikTok in the United States.

On Monday, Trump stated that tariffs of 25% could be imposed on Mexico and Canada as early as February.

European market investors will closely monitor the World Economic Forum in Davos, Switzerland, this week, as the annual conference, attended by world leaders, intensifies on Tuesday.

Despite the absence of leaders from China, India, and several European countries at Davos, Trump will speak to attendees via videolink on Thursday.

Ursula von der Leyen, head of the European Commission, and Ding Xuexiang, the vice premier of China, are set to give keynote speeches on Tuesday at 10:50 a.m. and 11:20 a.m., respectively.

At 2 p.m. local time, German Chancellor Olaf Scholz will address the forum, while Ukrainian President Volodymyr Zelenskyy will speak at 2:30 p.m. The forum will be a vital platform for the president to present Ukraine's case before facing potential pressure from Trump to reach a ceasefire with Russia and end the war.

In the afternoon, Cyril Ramaphosa, the president of South Africa, will deliver a keynote address at 3:45 p.m. Davos time.

In Europe on Tuesday, there are no major earnings releases, but there are data releases such as the U.K. unemployment rate for November and the ZEW indicator of European economic sentiment data.