The Dax DE0008469008 is heading for a recovery on Tuesday after two days of losses.

However, given the mixed results from overseas stock exchanges, buying appetite is likely to remain limited.

Just under an hour before trading began, the X-Dax DE000A0C4CA0 signaled a 0.6 percent gain for the German benchmark index, to 23,807 points. This would put the DAX back above the 21-day moving average, which is important for the short-term trend. Its Eurozone counterpart, the EuroStoxx 50 EU0009658145, is expected to post similar gains.

In New York, only the US benchmark index Dow Jones Industrial US2605661048 recorded gains on Monday. The broad-based S&P 500 US78378X1072 and the Nasdaq 100 tech index US6311011026, both of which have recently been on the hunt for records, saw moderate and sharp declines, respectively. In Asia, the major stock indices also failed to find a common direction recently.

This afternoon, the monthly labor market report from service provider ADP for the US private sector could provide price momentum. The labor market also plays an important role in American monetary policy. The US government's official labor market report will be released on Thursday.

Shares of German automakers are in the spotlight on Tuesday following US sales figures for the second quarter. The threat of high import tariffs on cars and auto parts only gave new car sales in the United States a brief boost. Many US customers had increased their visits to car dealerships in the spring to get new cars at even lower prices before the US tariffs took effect.

According to the analysis firm JD Power, this boosted sales in the second quarter compared to the same period last year. Volkswagen DE0007664039 and its subsidiaries Porsche and Audi, however, lagged behind the market with significant declines, dealers emphasized. BMW DE0005190003 sales figures also performed below average, posting a moderate decline, while Mercedes DE0007100000 Benz stood out positively with strong growth.

An upgrade by US bank JPMorgan could boost Munich Re DE0008430026. Analyst Kamran Hossain believes it's likely that the reinsurer could surprise positively with its investment income. The shares rose sharply in premarket trading on the Tradegate trading platform.

HSBC, on the other hand, downgraded its rating for DHL DE0005552004 to "Hold." A downgrade from investment bank Oddo BHF could dampen sentiment on Suss Microtec DE000A1K0235.