A look at the day ahead in European and global markets from Ankur Banerjee

The incredible rise of the euro this year is sure to play a part in Europe Inc's performance as a steady but unspectacular start to the earnings season kicks up a notch with results due from the region's largest software maker SAP.

While tariff uncertainties linger ahead of an August 1 deadline, investors are pinning their hopes on resilient corporate earnings from Wall Street and European bellwethers to keep stocks and sentiment aloft.

Investors will parse through quarterly results for any clues on the impact trade uncertainty has had on profitability and consumer demand, with the earnings so far described by RBC Capital Markets as "fine but not fabulous".

SAP, which has been riding a boom in demand for its cloud-based offerings spurred by artificial intelligence, will report later on Tuesday as will UniCredit and Julius Baer.

Focus will be on just how much the euro's rise has eaten into profits of the firms in the bloc's export-reliant economy after the single currency surged 9% in the April-June quarter.

The euro is up 13% so far in the year as investors looked for alternatives to U.S. assets and to lower their dollar exposure in the wake of U.S. President Donald Trump's erratic trade policies.

SAP had predicted back in April that for every 1 cent rise in the euro, its annual revenue could decline by around 30 million euros. The euro was last at $1.1688 compared to $1.1329 at the end of April.

Earnings from luxury behemoth LVMH and drugmaker Roche this week will also be of interest.

Tariffs and where they are headed remain on the agenda after diplomats said the EU is exploring wide-ranging "anti-coercion" measures which would let the bloc target U.S. services or curb access to public tenders in the absence of a deal.

Trump has threatened 30% duties on imports from Europe if no agreement is signed before the August 1 deadline.

Meanwhile, the 'will-he-won't-he' saga over Trump possibly firing Federal Reserve Chair Jerome Powell rumbles on.

U.S. Treasury Secretary Scott Bessent said on Monday the entire Federal Reserve needed to be examined as an institution and whether it had been successful, further exacerbating worries about the independence of the U.S. central bank.

Key developments that could influence markets on Tuesday:

Earnings: SAP, UniCredit, Julius Baer

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(Editing by Muralikumar Anantharaman)