LONDON — European markets are heading for a muted open on Tuesday as global investors await inflation data from the U.S., which could inform the Federal Reserve’s timing for tapering its monetary stimulus.

Britain’s FTSE 100 is seen around 4 points higher at 7,072, Germany’s DAX is expected to add around 34 points to 15,735 and France’s CAC 40 is set to climb around 10 points to 6,687, according to IG data.

U.S. consumer price index readings for August are due at 1:30 p.m. London time, and are expected to show inflation stateside continuing to run hot. The latest print comes after U.S. producer prices leaped 8.3% on an annual basis in August, the largest yearly increase since records began in November 2010.

Shares in Asia-Pacific were mixed on Tuesday as investors looked ahead to the figures, with tightening Chinese regulation also a key focus for investors in the region.

Stateside, stock index futures inched higher in early premarket trade on Tuesday after the S&P 500 snapped a five-day losing streak to close out Monday’s session in positive territory.

Meanwhile, House Democrats in Washington have proposed new tax hikes on individuals and corporations to finance a $3.5 trillion spending package.

Back in Europe, European Central Bank policymaker Isabel Schnabel said on Monday that the ECB is ready to act if inflation does not ease as soon as next year, as currently expected.

The fallout from Brexit continues to rumble on, with Britain once again on Monday threatening to unilaterally suspend the Northern Ireland protocol, a key tenet of the withdrawal agreement, if the European Union does not budge on renegotiations to iron out implementation problems.

Spanish August inflation data is also due Tuesday morning, along with U.K. employment and earnings figures. British retailer JD Sports reports interim results, while online supermarket Ocado releases a trading statement.

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