(fxcue news) - European stocks may open flat to slightly higher on Tuesday as investors weigh the potential impact of higher U.S. tariffs and look forward to a key meeting on the Ukrainian conflict, bringing together American and Russian officials. Saudi is hosting these talks without European leaders and President Zelenskyy. Amid much uncertainty over trade and the monetary policy path, market participants also await further policy signals from Fed officials. Federal Reserve Governor Christopher Waller noted late Monday that recent economic data support keeping interest rates on hold, but officials can get back to cutting rates at some point this year, if inflation behaves as it did in 2024. Separately, Michelle Bowman, Governor of the Federal Reserve, said that she wants to see more progress on inflation before deciding on another rate cut. Asian markets were mixed, recouping early losses amid optimism around a revival in China's economy. After holding a rare meeting on Monday with some of the biggest names in China's technology sector, President Xi Jinping has promised 'unwavering' support for private sector. The Japanese yen held on to its recent gains as strong Q4 GDP data fueled bets the Bank of Japan will raise interest rates sooner and to higher levels than previously anticipated. Elsewhere, the Reserve Bank of Australia cut official interest rates for the first time in four years but cautioned about future cuts. The U.S. dollar wobbled near two-month lows amid trade policy uncertainty and ahead of the release of minutes of the Federal Reserve's January meeting on Wednesday. Gold traded higher above $2,900 per ounce. Oil prices traded higher, with WTI futures rising over 1 percent after reports emerged that the OPEC+ group is considering postponing their planned production hike in April. U.S. markets were closed overnight for Washington's Birthday. European stocks marked a record close high on Monday, with defense stocks rallying as EU leaders convened an emergency meeting in Paris for talks on Ukraine and to ramp up regional security. The pan European STOXX 600 gained half a percent. The German DAX jumped 1.3 percent, France's CAC 40 edged up 0.1 percent and the U.K.'s FTSE 100 added 0.4 percent.