European Shares Likely To Open On Firm Note

(RTTNews) - European stocks may open on a positive note Tuesday as trade tensions continue to ease, and China's central bank cut interest rates to record lows to stimulate the world's second-largest economy challenged by weak consumer demand and a property crisis.

The People's Bank of China slashed its one-year loan prime rate (LPR), a key reference for household and business lending, to 3.0 percent from 3.1 percent, while the five-year LPR, typically used for mortgages, was lowered by 10 basis points to 3.5 percent.

Elsewhere, the Reserve Bank of Australia cut its main cash rate by 25 basis points to a two-year low of 3.85 percent, as widely expected, citing an uncertain global economic outlook and cooling inflation at home.

Asian markets were muted, even as Hong Kong's Hang Seng rallied over 1 percent, led by tech stocks like Alibaba and Baidu.

The U.S. dollar traded sideways due to trade-related uncertainties, concerns over ballooning fiscal debt and weakened confidence about enduring U.S. exceptionalism.

Treasuries were little changed after whipsawing on Monday. Oil edged lower after two days of gains as Russian President Vladimir Putin indicated a potential resumption of peace talks with Ukraine and Iran said nuclear talks could break down if the U.S. insists on no enrichment.

Gold ticked lower after two Federal Reserve officials signaled that interest rates are likely to remain on hold until at least September due to a murky economic outlook.

Fed Vice Chair Philip Jefferson backed a wait-and-see approach, citing uncertainty and warning against temporary price increases becoming sustained inflation.

Atlanta Fed President Raphael Bostic told CNBC that he's leaning toward just one quarter point rate cut this year, given concerns about rising inflation stoked by higher import taxes.

U.S. stocks ended modestly higher overnight, after having slumped early in the session following Moody's downgrade of the U.S. credit rating.

The S&P 500 finished marginally higher to extend its winning streak for a sixth straight session as Treasury yields came off their highs.

Earlier, longer-dated bond yields touched 5 percent on worries about the cost of President Trump's policies and the health of the economy.

U.S. Treasury Secretary Scott Bessent downplayed debt concerns and said the government is determined to lower spending and boost the economy.

The Dow rose 0.3 percent and the tech-heavy Nasdaq Composite ended flat with a positive bias.

European stocks closed mostly higher on Monday after seeing early weakness. The pan European STOXX 600 gained 0.1 percent.

The German DAX jumped 0.7 percent and the U.K.'s FTSE 100 edged up by 0.2 percent as the EU and Britain agreed to reset relations. France's CAC 40 finished marginally lower.