European markets lukewarm as investors look ahead to U.S. inflation data

LONDON — European stocks were cautiously higher on Tuesday morning with global investors looking ahead to U.S. inflation data released later this week.

The pan-European Stoxx 600 index gained 0.2% in early trade, with basic resources adding 1.1% while tech stocks slipped 0.6%.

Global investors are awaiting key data on Thursday with the U.S. Labor Department set to release January's consumer price index figures.

The reading follows a stronger-than-expected January jobs report, which has led to speculation that the U.S. Federal Reserve could be more aggressive when it comes to hiking rates. The inflation data is expected to show that prices rose 0.4% in January, for a 7.2% gain from one year ago.

Bank of America said Monday that the Fed could implement seven quarter-percentage-point rate hikes this year.

U.S. stock index futures crept higher during overnight trading Monday while shares in Asia-Pacific were mixed in Tuesday trade, as Chinese markets led losses regionally.

Earnings came from BNP Paribas, SoftBank and BP on Tuesday, as well as Ocado and Tui.

Oil and gas giant BP reported a massive upswing in full-year net profit, its highest in eight years, supported by soaring commodity prices.

— CNBC's Pippa Stevens contributed to this market report.