European stocks opened higher on Tuesday, with the Stoxx 600 index rising 0.4%, led by gains in financial services.

This follows a mixed close on Monday, as investors focus on upcoming U.S. and U.K. inflation data.

U.K. wage growth slowed to 5.4% year-on-year between April and June, the lowest in two years, while unemployment fell to 4.2%.

The British pound strengthened against the U.S. dollar and euro after the labor market data, CNBC has reported.

Meanwhile, global investors are closely watching U.S. inflation data this week, which could influence the Federal Reserve’s decisions on interest rates.

Written by B.C. Begley