Europe open: Stocks rise amid speculation Japan will delay sales tax increase

European stocks gained at Tuesday’s open amid speculation that Japanese Prime Minister Shinzo Abe will hold back on a sales tax increase.

Abe is reportedly set to delay a planned increase in the nation’s sales tax as the economic recovery remains fragile.

The comments helped to pushed Japanese stocks higher. Pointing to further weakness in the world’s third largest economy was a report showing an unexpected drop in consumer confidence. The sentiment index fell to 38.9 in October from 39.9 a month earlier, compared to forecasts of 40.5.

In Europe, it looks set to be a quiet session with very few economic data releases. The main event this week will be the Bank of England’s (BoE) inflation report on Wednesday.

“After last week’s data and volatility it seems that this week will struggle for the entire week in the US, however data from Asia as well as the BoE quarterly inflation report is likely to get markets moving,” said Alpari UK analyst James Hughes.

The US is also light on economic data apart from a release on small business optimism at 12:30 London time.

Vodafone rallies on half year results

Vodafone advanced after revealing half-year services revenue fell slower than analysts’ had predicted.

Royal Vopak NV gained after reporting an increase in earnings before interest and taxes in the third quarter.

Henkel AG climbed after posting third-quarter earnings that beat estimates and raising its full-year margin forecast.

The euro dipped 0.07% to $1.2412.

Brent crude futures fell 0.83% to $81.68 per barrel, according to the ICE.