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European stocks set for positive open; U.S., UK inflation data in focus this week

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European stocks are expected to open higher Tuesday, regaining some positive momentum after last week's volatility.

European stocks closed higher last Friday as investors digested economic data from the region including a preliminary U.K. second-quarter GDP reading, July inflation prints out of France, Spain and Italy, and euro zone industrial production for June.European stocks closed mixed on Monday as forthcoming U.S. and U.K. inflation data dominated investor attention.by 25 basis points. After two months at 2%, economists polled by Reuters expect the headline rate to tick higher, to 2.3%.

Investors around the world will be analyzing the latest U.S. inflation data too this week, in order to get a better picture of the state of health of the world's largest economy. The U.S. producer price index, a measure of wholesale prices, is published on Tuesday and the consumer price index for July will be released Wednesday, with investors assessing whether the data could prompt the U.S. Federal Reserve to begin cutting rates in September.In Europe Tuesday, earnings are due from Bilfinger, Henkel and Pandora. Data releases include UK unemployment and the EU economic sentiment index.

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