European Shares Seen Tad Higher At Open

(RTTNews) - European stocks look set to open a tad higher on Tuesday after falling sharply in the previous session.

U.S. stock futures ticked higher while Treasury yields continued to slip amid anxiety over U.S. tariff policy and a potential recession in the world's largest economy.

After trading closed on Monday, a White House official downplayed the weeks-long stock market sell-off, insisting that recent moves by business leaders suggest a brighter outlook for the U.S. economy.

In a separate statement, White House spokesman Kush Desai said "industry leaders" had responded to Trump's agenda, including tariffs, "with trillions in investment commitments".

As growth and inflation worries mount, investors now await U.S. reports on consumer and producer price inflation, as well as readings on consumer sentiment and inflation expectations this week for further direction.

Asian markets cut early losses as investors boosted their bets on Federal Reserve interest-rate cuts.

Traders are now pricing in 88 bps of easing from the Fed this year, compared to 75 bps on Monday, according to LSEG data.

The Bank of Canada is expected to cut its interest rate by 25 basis points on Wednesday amid trade uncertainty with the U.S.

Gold edged up toward $2,900 per ounce, the dollar remained weak, and the Japanese yen hit a five-month high amid concerns that tariff policy uncertainty could push the U.S. economy into recession.

Oil extended losses on demand concerns and uncertainty over OPEC+ supply changes.

U.S. stocks plummeted overnight due to rising uncertainty around President Trump's trade policies and the outlook for inflation and economic growth.

The tech-heavy Nasdaq Composite plunged 4 percent, the S&P 500 lost 2.7 percent and the Dow fell 2.1 percent.

European stocks also closed lower on Monday due to tariff worries, the threat of a U.S. recession and signs of deepening deflationary pressures in China.

The pan European STOXX 600 fell 1.3 percent. The German DAX declined 1.7 percent, while France's CAC 40 and the U.K.'s FTSE 100 both ended down around 0.9 percent.