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 and Visa, while Coca-Cola, General Electric, General Motors 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 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, General Motors, UPS, Tesla, Google