This week, the focus is on U.S. and UK inflation data while European stocks are expected to have a positive start.

European stocks are predicted to open positively on Tuesday, recovering some momentum following last week's instability.

According to IG's data, the U.K.'s index has opened 26 points higher at 8,233, Germany's index is up 18 points at 17,288, France's index is up 14 points at 7,259, and Italy's index has increased by 62 points to 32,084.

On Monday, European stocks ended with a mixed performance, with investor focus on upcoming U.S. and U.K. inflation data.

The Bank of England cut interest rates by 25 basis points two months ago, and economists expect the headline rate to increase to 2.3% when the U.K. inflation data is released on Wednesday.

This week, investors worldwide will examine the latest U.S. inflation figures to gain insight into the health of the world's largest economy.

On Tuesday, the U.S. producer price index, which measures wholesale prices, is published, and on Wednesday, the consumer price index for July will be released. Investors will evaluate whether the data could prompt the U.S. Federal Reserve to start cutting rates in September.

After a volatile trading session in the U.S. on Monday, Asia-Pacific markets experienced mixed performance overnight. Meanwhile, U.S. stock futures remained relatively stable Monday night as investors anticipate crucial inflation data to be released this week.

In Europe on Tuesday, earnings are due from Bilfinger, Henkel, and Pandora. Additionally, data releases include the UK unemployment rate and the EU economic sentiment index.