European Shares Set For Muted Open

(RTTNews) - European stocks are seen opening a tad lower on Tuesday as investors await more U.S. economic data this week for additional clues on the Fed's rate trajectory.

Traders await cues from a slew of central bank meetings, with the European Central Bank and the Bank of Canada both expected to cut rates this week ahead of next week's FOMC meeting, which concludes on June 12.

After the release of weak U.S. manufacturing and construction spending data, investors now await the upcoming job data for indications of economic strain.

Currently, a first quarter-point rate increase by the Fed is fully priced by the November meeting.

Asian markets traded mostly lower in muted trade and gold was little changed while the dollar hovered near two-month lows.

Oil extended losses after having fallen more than 3 percent to a 4-month low on Monday, weighed down by an announcement by OPEC+ that the group will begin phasing out voluntary production cuts over the next one year.

Germany's jobless figures for May will be released later in the day. The consensus expectation is for an increase of 7,000 in unemployment after a stronger than expected 10,000 rise in April. The jobless rate is expected to hold steady at 5.9 percent.

U.S. stocks ended mixed overnight, Treasury yields dipped, and the dollar hit a three-week low as soft factory activity and construction spending data added to signs the U.S. economy is gradually slowing down.

The tech-heavy Nasdaq Composite gained 0.6 percent as Nvidia announced its next generation of Artificial Intelligence chips. The S&P 500 inched up 0.1 percent while the Dow dipped 0.3 percent.

European stocks ended broadly higher on Monday amid bets that the ECB will deliver its first interest-rate cut of the cycle on Thursday.

The pan European STOXX 600 edged up 0.3 percent. The German DAX rose 0.6 percent and France's CAC 40 finished marginally higher while the U.K.'s FTSE 100 slipped 0.2 percent.