(fxcue news) - European stocks may open on a positive note Tuesday ahead of a German parliament vote on the country's spending plans set to take place later in the day. The proposal seeks to exempt defense spending from debt limits and create a 500-billion-euro infrastructure plan fund. The CDU/CSU bloc, led by Friedrich Merz, is likely to secure the necessary majority votes for the constitutional amendments that would pave the way for the reform measure. In an interview with public broadcaster ARD on Sunday, Merz said the "situation has worsened in recent weeks", citing Trump's overtures to Russia to end the Ukraine war and his wavering commitment to NATO. "That is why we have to act fast," Merz said. Traders may also follow the latest geopolitical developments and assess their impact on financial markets. The Kremlin confirmed that Russian President Vladimir Putin would talk to the U.S. President Donald Trump by phone on Tuesday. Elsewhere, Israel carried out airstrikes in the Gaza Strip, southern Lebanon and southern Syria on Monday, killing at least 10 people. In economic releases, economic confidence figures from Germany and foreign trade data from the euro area are awaited later in the day. Across the Atlantic, reports on industrial production, housing starts and import and export prices may attract attention, although activity is likely to be somewhat subdued ahead of the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to leave interest rates unchanged, with traders likely to scrutinize the accompanying statement as well as officials' latest projections for clues about the outlook for rates amid much uncertainty about the economic impact of President Trump's trade policies. Elsewhere, the Bank of Japan is set to hold the benchmark rate at the current level of 0.5 percent on Wednesday. The Bank of England is expected to take another pause on its rate-cutting path Thursday while Switzerland's central bank looks set to cut interest rates for the last time in the current cycle. U.S. stock futures slid while Asian markets were mixed, giving up some early gains on renewed optimism over China's economy. The dollar index was little changed while gold edged up and held above the $3,000 level mark. Oil prices rose for a third straight session, with the outlook for China's economy and geopolitical risk in the Middle East remaining in focus. U.S. stocks rose for a second straight session on Monday after Treasury Secretary Scott Bessent said he is "not worried" about the recent market downturn. Overall gains were limited due to growth concerns and trade uncertainties. Retail sales rose less than expected in February and saw downward revisions for January. Factory activity in New York State plummeted the most in nearly two years in March and homebuilder sentiment dropped to a seven-month low in March, adding to concerns about the economic outlook. A model utilized by the Federal Reserve Bank of Atlanta projected a -2.1 percent contraction in Q1 2025, down from the March 7 estimate of a 1.6 percent contraction. The Dow gained 0.9 percent, the S&P 500 rose 0.6 percent and the tech-heavy Nasdaq Composite edged up by 0.3 percent. European stocks closed higher on Monday after China said it would take measures to revive consumption in the world's second-largest economy. The pan European STOXX 600 surged 0.8 percent. The German DAX climbed 0.7 percent while France's CAC 40 and the U.K.'s FTSE 100 both rose by 0.6 percent.