(fxcue news) - European stocks are likely to open higher on Tuesday amid investor optimism about corporate earnings. After beats by JP Morgan and Wells Fargo, the focus now shifts to earnings from Bank of America, Citigroup, Goldman Sachs, Johnson & Johnson, UnitedHealth and Walgreens later in the day. Thursday's ECB meeting also remains on investors' radar, with the central bank likely to deliver another interest rate cut after recent data signaled continued weakness in the euro zone economy. Asian stocks were broadly higher, with Japan's Nikkei leading regional gains after Prime Minister Shigeru Ishiba reportedly said his government is aiming to compile a supplementary budget for the current fiscal year in excess of last year's 13.1 trillion yen ($87.6 billion) to fund an economic support package. The yen dipped from a 2-1/2 month high amid bets that the Bank of Japan will forgo raising interest rates again this year. Chinese and Hong Kong markets were declining after weekend announcements from authorities about economic support failed to inspire confidence among investors. The dollar soared to a two-month peak and gold ticked lower, aided by expectations of a smaller U.S. rate cut next month. Fed Governor Christopher Waller on Monday signaled that future interest rate cuts will be less aggressive than the big move in September, following mixed data points in recent days. Oil prices slumped nearly 4 percent in Asian trading, extending losses for a third straight session after reports emerged that Israel may avoid targeting Iran's crude infrastructure or nuclear facilities, easing immediate concerns about supply disruptions. U.S. stocks rallied to new records overnight on relief that interest rates are finally heading back down and that the economy is on a solid footing. The Dow gained half a percent and the S&P 500 jumped 0.8 percent to reach new record closing highs while the tech-heavy Nasdaq Composite advanced 0.9 percent. European stocks closed higher for a second day running on Monday as investors weighed the prospects of a 25-bps ECB rate cut later in the week. The pan-European STOXX 600 ended half a percent higher at a two-week high. The German DAX climbed 0.7 percent, France's CAC 40 edged up 0.3 percent and the U.K.'s FTSE 100 added half a percent.