European stocks rose on Monday, with the benchmark index ending at a more-than-one-year closing high, as investors interpreted U.S. President Donald Trump's recent meetings with international dignitaries as signaling a softer foreign-policy stance. On Monday, investors turned their attention back to the U.S. and the latest actions by Trump. The U.S. president over the weekend eased concerns of trade wars with Japan, saying the "United States of America stands behind Japan, its great ally, 100%" as he met with the country's prime minister, Shinzo Abe.

Asian stocks largely slipped Tuesday amid caution ahead of U.S. Federal Reserve Chairwoman Janet Yellen's upcoming congressional testimony, as signs build that the Trump-driven reflation trade is back. In the U.S. overnight, the Dow Jones Industrial Average, the S&P 500, the Nasdaq Composite and the Russell 2000 all reached record highs.

U.S. stocks extended gains on Monday, with major indexes closing at records for a third session in a row as financial and industrial stocks paved the way to higher ground. "Even though we have social unrest and building geopolitical tensions, the market refuses to fall in any meaningful fashion, which means there remains a very strong underlying bid in the market," said Adam Sarhan, chief executive officer of 50 Park Investments.