European Shares Set For Steady Start In Cautious Trade

European stocks are likely to open a tad higher on Tuesday as fears of a U.S. recession begin to fade.

Asian markets traded mixed while U.S. stock futures dipped ahead of key inflation data due this week that could influence the Federal Reserve’s policy path.

Credit conditions for U.S. business and households continued tightening in the first months of the year, according to a quarterly Federal Reserve survey of senior loan officers released Monday.

The U.S. reports on consumer and producer price inflation will be released on Wednesday and Thursday, respectively, while the Bank of England’s interest-rate decision is scheduled on Thursday.

Closer home, U.K. Halifax house price data is due later in the day. House prices are forecast to rise 0.2 percent on month in April, after rising 0.8 percent in March.

The dollar edged up in Asian trade and Treasury yields remain elevated as strong U.S. jobs data helped ease recession worries temporarily.

Gold edged up slightly while oil prices eased, after having climbed over 2 percent on Monday on signs of supply disruptions in Canada.

U.S. stocks ended mixed overnight as investors fretted about a possible U.S. debt default and looked ahead to the release of key inflation numbers due later in the week for directional cues.

The Dow eased 0.2 percent as an early rally in regional banks faded. The S&P 500 inched up marginally and the tech-heavy Nasdaq Composite added 0.2 percent.

European stocks closed mostly higher on Monday in thin trade amid a holiday in the U.K. The pan-European STOXX 600 rose 0.4 percent, led by banks and healthcare companies.

The German DAX ended flat with a negative bias while France’s CAC 40 edged up 0.1 percent.

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