Consumer confidence from France and revised quarterly national accounts from Spain are the major reports due on Wednesday. At 2.45 am ET, France's statistical office INSEE is slated to issue consumer sentiment survey results. The confidence index is expected to rise to 89 in June from 88 in May. At 3.00 am ET, Spain's INE releases revised GDP and producer prices data.

The Bank of England must have a prudent approach to reducing interest rates as the U.K. inflation may remain high for a longer time than expected rather than a short-term spike, and also due to risks on the global front including fluctuations in oil prices in the backdrop of the ongoing Middle East conflict, policymaker Megan Greene said on Tuesday.

The U.S. dollar weakened against other major currencies in the European session on Tuesday, as European shares traded higher on a strong note after the office of Israeli Prime Minister Benjamin Netanyahu and Iranian state media outlet Press TV confirmed a ceasefire had begun.

Despite intense pressure from President Donald Trump to lower interest rates, Federal Reserve Chair Jerome Powell on Tuesday indicated the central bank is likely to remain on hold. "For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell said.

German business confidence rose to the highest level in 13 months in June driven by improving hopes that fiscal measures will underpin economic recovery, a closely watched survey showed on Tuesday. The business climate index registered 88.4 in June, up from 87.5 in May, the Munich-based ifo Institute revealed. This was the highest level since May 2024, when the reading was 88.9.

South Korea's consumer confidence strengthened to a four-year high in June on improving domestic economic conditions, survey data from the Bank of Korea showed on Tuesday. The consumer sentiment index advanced to 108.7 in June from 101.8 in the previous month. This was the highest score in four years. The sub-index measuring future domestic economic situation surged 16 points to 107 in June.

Business sentiment data from Germany is due on Tuesday, headlining a light day for the European economic news. At 3.00 am ET, the Czech Statistical Office is scheduled to publish business and consumer sentiment survey results. At 4.00 am ET, the ifo Institute is set to release Germany's business sentiment survey data. Economists forecast the business climate index to rise to 88.2 in June.

The UK private sector output picked up at the strongest pace in three months in June after business volume returned to growth, flash survey results from S&P Global showed on Monday. The flash composite output index registered 50.7 in June, up from 50.3 in May. The reading was above the crucial 50.0 no-change value for the second straight month.

The euro area private sector expanded for the sixth straight month in June as sustained increases in manufacturing output coincided with a stabilization of services activity, flash purchasing managers' survey results from S&P Global showed on Monday. The flash HCOB composite output index remained unchanged at 50.2 in June. The index posted above the 50.0 no change mark for the sixth month.

The U.S. Dollar rebounded against major currencies during the week ended June 20 amidst an escalation in tensions in the Middle East.

Germany's private sector returned to growth in June, led by the manufacturing sector, flash data from S&P Global revealed on Monday.The HCOB composite output index stood at 50.4 in June, rebounding from a five-month low of 48.5 in May. A reading above the neutral 50.0 level signals expansion in the sector. Growth in manufacturing output was partly offset by a slower reduction in services activty

The antipodean currencies such as the Australia and the New Zealand dollars weakened against other major currencies in the Asian session on Monday due to increased risk-off mood by the investors, amid escalation in the middle east conflict after the U.S. joined Israel in the weeks-long war with Iran, with U.S. carrying out a "successful" airstrike on three nuclear sites in Iran over the weekend. This has heightened fears of a broader regional conflict.

France's private sector output declined further in June as both manufacturing and services activity entered the contraction territory, flash survey results from S&P Global showed on Monday. The HCOB flash composite output index declined to 48.5 in June from 49.3 in the previous month. A reading below 50.0 indicates contraction.

Japan's private sector grew the most in four months in June as manufacturing activity returned to growth amid stronger increase in services activity, flash data from S&P Global showed on Monday. The au Jibun Bank flash composite output index posted 51.4 in June, which was up from 50.2 seen in May. A score above 50.0 indicates expansion.

Flash composite Purchasing Managers' survey results from euro area and the UK are the top economic news due on Monday. At 3.15 am ET, S&P Global publishes France's flash PMI survey data. The manufacturing PMI is forecast to remain unchanged at 49.8 in June. The services PMI is seen at 49.2, up from 48.9 in the previous month.