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)