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

Westbrook

Markets mostly took Joe Biden's withdrawal from the U.S.

presidential race in their stride, flicking the switch from

politics back to focus on earnings and interest rates.

In the U.S., a September rate cut is all but locked in to

prices, and in Europe a 25 basis-point cut is expected in

October.

Euro zone consumer confidence figures and U.S. existing home

sales, both due on Tuesday, are unlikely to shift that outlook.

Rather, as stock markets stabilise following a sharp selloff

in chipmaking companies' shares, traders are expected to take

cues from earnings due after the market close for Tesla

and Alphabet, the first of the "Magnificent Seven"

stocks to report.

Tesla's profit margins are expected to have fallen while

Alphabet is expected to report a fourth straight quarter of

double-digit revenue growth on an uptick in the advertising

market.

Google on Monday scrapped plans to remove user-tracking

cookies from its Chrome browser, under pressure from advertisers

who use cookies' data to target advertisements.

Also reporting after market in the U.S. are Texas

Instruments ( TXN ) and Visa, while Coca-Cola,

General Electric ( GE ), General Motors ( GM ) and UPS

report before trade begins.

In Europe, defence firm Thales reports in the

Paris morning, while Louis Vuitton earnings due after

the market will help investors to gauge the pulse of Chinese

demand.

Luxury stocks gained after surprise rate cuts in China on

Monday but the sector has been suffering from a prolonged

downturn in spending in the world's second-biggest economy.

Profit warnings from Burberry ( BBRYF ) and Hugo Boss

, combined with a 27% drop in quarterly sales in

greater China at Richemont last week, have dashed hopes

for a better second half.

Asian markets steadied in a quiet session, where chipmaker

stocks tracked a rebound on Wall Street.

Key developments that could influence markets on Tuesday:

Economics: Europe consumer confidence, U.S. existing home

sales, Richmond Fed manufacturing index

Earnings: LVMH, Thales, Coca-Cola, General Electric ( GE ), General

Motors ( GM ), UPS, Tesla, Google