Also helping to lift sentiment was the relative calm in the technology sector, after last week's turbulence caused by uncertainties surrounding artificial intelligence.
Investors are facing a new wave of earnings reports, with Ford and Coca-Cola among the U.S. companies set to publish their results on Tuesday.
In Europe, British bank Barclays reported its figures, announcing a 12% increase in profits, while London-listed oil giant BP also posted a 32% rise in earnings but suspended share buybacks.
On the macroeconomic front, the U.S. Department of Commerce is expected to show a 0.4% increase in December retail sales, following November's 0.6% rise. However, the main highlights of the week will come on Wednesday, with the U.S. monthly employment report, and on Friday, with the January U.S. CPI.
Regarding the labor market, Kevin Hassett, economic advisor to the White House, noted on Monday that job gains could moderate in the coming months, as President Trump's administration's migration policies slow workforce growth and new AI tools boost productivity.
Bankinter pointed out on its Telegram channel that "(the stock market tone in the United States) could be somewhat more constructive, given the expectation that weak employment data would imply bigger rate cuts by the Fed, provided corporate earnings cooperate."
Against this backdrop, at 0802 GMT on Tuesday, Spain's IBEX 35 benchmark index was down 9.30 points, or 0.05%, at 18,185.80 points, while the pan-European FTSE Eurofirst 300 index slipped 0.07%.
In the banking sector, Santander lost 0.17%, BBVA fell 0.24%, Caixabank rose 0.14%, Sabadell dropped 0.52%, Bankinter was down 0.27%, and Unicaja Banco lost 0.43%.
Among major non-financial stocks, Telefónica added 0.14%, Inditex climbed 0.45%, Iberdrola gained 0.23%, Cellnex dipped 0.04%, and oil company Repsol lost 0.62%.
(Reporting by Tomás Cobos, editing by María Bayarri Cárdenas)
