On Monday, European stocks rose as gains in automobile and banking sectors offset early losses, while investors focused on the first round of the French parliamentary elections later this week.
The pan-European STOXX 600 index was up 0.4% by 0838 GMT. Automobile stocks led the gains, rising 1.6%, after the EU and China agreed to negotiate a planned tariff on Chinese-made electric vehicles.
Eurozone banking stocks surged 0.9%, with Italian banks such as BPER, UniCredit, and Monte dei Paschi di Siena rising between 2.4% and 3.7%.
This week's focus will be on the first round of the French parliamentary elections, with polls showing the far-right National Rally (RN) party and its allies in the lead.
France's benchmark stock index rose 0.5% early this week.
Investors await comments from at least four European Central Bank members, including Board Member Isabel Schnabel, to understand the central bank’s monetary policy path.
Data showed that Germany's business climate index unexpectedly dropped in June due to a more pessimistic outlook for Europe's largest economy.
"The optimism at the start of the year has given way to reality. The latest readings indicate that the German economy is still struggling to gain more momentum," said Carsten Brzeski, Global Head of Macro at ING.
Data last week showed the pace of recovery in German business activity slowed over the past two months in June, while broader eurozone data showed business growth sharply declined.
