European stocks closed higher on Tuesday, buoyed by financials and defence stocks, though Danish stocks logged their biggest one-day drop of the year as Novo Nordisk's shares slid after the weight-loss drug maker issued a profit warning.

There's just under an hour and a half to go until stocks begin trading for the first time since the U.S. and European Union agreed to a trade deal. Futures tied to the Stoxx Europe 600 index point to a strong start with the index expected to open 0.8% higher.

Investors kick off a hectic week with stocks moving mostly lower after a U.S.-European Union trade deal, with a Fed meeting, jobs data and a deluge of corporate earnings on deck.

U.S. stock futures rose Friday after the Nasdaq closed at a new record Thursday. European shares fell in line with Asia amid uncertainty regarding Fed interest rates.

Easing tariff concerns could fuel a breakout in European equities after months of market stagnation, according to Barclays analysts.

President Donald Trump later said that he wouldn’t go below 15% as a floor for the so-called reciprocal tariffs ahead of the deadline on August 1, and suggested that some levies may go as high as 50%. Speaking at an AI summit on Wednesday, Trump said: