U.S., U.K. and Germany PMIs in focus, Lagarde's speech awaited

As concerns grow that a significant Russian convoy is headed towards Ukraine's capital Kyiv, European stocks are expected to open lower on Tuesday. While traders took a breather amid the fast-moving Ukraine crisis, the rouble began to stabilize after it hit an all-time low of around 110. Meanwhile, the U.S. dollar resumed its rise against major peers. The number of bitcoin transactions on centralized cryptocurrency exchanges in the Russian ruble and Ukrainian hryvnia surged to their highest level in months after the Russian invasion began on Thursday. After the Treasury Department imposed new sanctions against Russia's central bank, the crypto market gained, and bitcoin jumped about 15% to 44K.

Events of today

The focus will be on February's final Eurozone PMI manufacturing activity figures for signs of strength in this crucial sector on the economic data front.

Fears of a disruption in supplies from Russia, the world's top crude producer, outweighed the potential for a coordinated release of crude from strategic reserves, sending oil prices higher tow$100 again.

The headlines from the Russia-Ukraine war will continue to drive financial markets. Still, investors will also pay attention to the Manufacturing Purchasing Managers Index (PMI) data from the UK, Germany, and the U.S. due on Tuesday.

German PMI may impact Euro

The German manufacturing PMI numbers for February will be released later in the session, which is a major source of growth in the region, is dealing with the Omicron situation and its associated supply-side problems. The index's final reading is expected to confirm easing from 59.8 to 58.5 in February.

U.K. manufacturing PMI

Investors are waiting for the U.K. manufacturing PMI in February, which will be released later on Tuesday. After three consecutive rate hikes by the Bank of England, the Manufacturing sector is likely to have a less impressive month, with an index seen steady at 57.3. That still implies a healthy rate of expansion.

ECB president speech

As commodity prices continue to rise, February's Eurozone inflation data is expected to reach yet another record-high level. A clue from ECB president Lagarde on Tuesday will be eagerly awaited by investors to see how the Ukraine crisis may affect the ECB's recent turn to a hawkish stance.

U.S. manufacturing PMI by ISM

Investors expect the manufacturing PMI to rise from 57.6 in January to 58 in February. Overnight, the U.S. dollar ended marginally higher in light of the escalating tensions in western Europe. The dollar continued to rise after the ceasefire talks got nowhere. This week, robust U.S. economic data or hawkish testimony from Powell will place a 0.5% hike this month by the FOMC. This will add to the bullish outlook for the dollar.