European stocks set to slip as relief rally falters

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European stocks are expected to fall slightly on Tuesday as the relief rally seen in the previous two sessions looks set to lose momentum.

index added 0.8% by Monday's close, building on gains at the end of last week amid broadly positive global sentiment.

However, several analysts voiced skepticism about the sustainability of the rally, given the lack of fundamental drivers and persistent concerns about growth and inflation.'s policy meeting in Frankfurt on Thursday, with policymakers having given advance notice of a first hike in 11 years but facing a backdrop of slowing growth amid the war in Ukraine and subsequent threats to energy supplies.

A final euro area inflation print for June is expected at 10 a.m. London time, along with May's construction output figures. Earnings season is also gathering steam. Novartis, Ubisoft, Remy Cointreau, Vinci, Telenor, Assa Abloy, Swedbank and Finnair were among those reporting before the bell on Tuesday.

Political instability has also returned to prominence, with the U.K. Conservative Party leadership contest entering its fourth round of ballots among MPs as the remaining candidates seek to succeed Prime Minister Boris Johnson.last week had his resignation rejected by President Sergio Mattarella, having offered to step down when one of the parties in his coalition government boycotted a confidence vote in a new wide-ranging policy package.

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