European Shares Seen Opening Mixed In Cautious Trade

(RTTNews) - European stocks are seen opening mixed on Tuesday, with U.K. markets likely to drift lower as trading resumes following a long holiday weekend.

Asian markets traded mostly higher, though Chinese and Hong Kong stocks fell ahead of earnings reports from some of the biggest Chinese banks.

The U.S. dollar declined against the yen after Japan jobless rate came in flat at 2.6 percent in July. Oil prices dipped slightly after surging nearly 4 percent overnight.

The dollar index eased off a 20-year high and yields consolidated recent gains around monthly highs, as investors looked ahead to the release of U.S. payrolls data on Friday for additional clues on the Fed's plans for tightening policy.

Minneapolis Fed President Neel Kashkari on Monday said the stock-market sell-off following Fed Chair Jerome Powell's hawkish Jackson Hole speech showed "people now understand the seriousness of the Fed's commitment to getting inflation back down to 2 percent."

Separately, ECB Chief Economist Philip Lane said in a speech that the upcoming September monetary policy meeting will be the "start of a new phase" for the central bank.

German CPI flash reading, U.K. mortgage approvals data and Eurozone economic sentiment figures will be released later in the European session.

U.S. stocks saw further downside overnight to extend Friday's rout, as rising Treasury yields and higher oil prices amid reassurances of supply cuts by OPEC and its allies prompted investors to reprice rate hike expectations.

The Dow shed 0.6 percent, the tech-heavy Nasdaq Composite lost 1 percent and the S&P 500 declined 0.7 percent.

European stocks hit one-month low on Monday, as a deepening energy crisis and hawkish comments from central bankers added to fears of an imminent recession.

The pan-European Stoxx 600 index fell 0.8 percent. The German DAX slipped 0.6 percent, France's CAC 40 index dipped 0.8 percent and the U.K.'s FTSE 100 gave up 0.7 percent.