By Dow Jones Newswires Staff

Investors turned more cautious Tuesday as they awaited U.S. inflation data due at 1230 GMT and after Monday's rally as the U.S. and China slashed levies on each other's exports.

U.S. stock futures pointed to a weaker open while the pan-European Stoxx Europe 600 index trades only just in positive territory at the open. Still, a White House executive order overnight said the U.S. will also cut the low-value "de minimis" tariff on China shipments, which will add to the drum-beat of optimism around trade.

--U.S. Dow Jones Industrial Average futures were down 0.3% early in Europe, with those for the S&P 500 off 0.4% and the Nasdaq down 0.5%.

--European stock markets started the day near flat, with Stoxx 600 pan-European index up just 0.3%, Germany's DAX up 0.2% and the U.K.'s FTSE 100 barely rising. Stocks in Asia were mixed with Japan's Nikkei 225 index closing up 1.4%, China's Shanghai Composite gaining 0.2% while Hong Kong's Hang Seng fell 1.7%.

--Bitcoin edges lower as it gives back gains from the previous session driven by the U.S. and China agreeing a temporary reduction in tariffs. Investors welcome the easing in trade tensions but remain cautious, IG analysts said in a note. Tariffs remain historically high and still pose risks to global growth, they said.

The truce has damped interest-rate cut expectations for the Federal Reserve. Markets are now turning their focus to key U.S. inflation data at 1230 GMT and upcoming earnings amid "lingering uncertainty" over what will follow the 90-day U.S.-China tariff reprieve, IG said.

Bitcoin falls 0.2% to $102,463 after hitting a three-and-a-half-month high of $105,716 Monday, according to LSEG.

--The 10-year Treasury yield, which rose eight basis points on Monday, was unchanged at 4.457%, according to Tradeweb but yields look set to rise in the next three to six months as inflation and deficit concerns overtake growth worries, ING rates strategists analysts said in a note.

--The dollar eased after reaching a one-month high in the previous session. The DXY dollar index against a basket of major currencies was recently down 0.2% to 101.618 after reaching a high of 101.977 on Monday.

--Oil prices ticked higher even as uncertainty around the future of trade negotiations and concerns about rising OPEC+ supply linger. Brent crude and WTI were both up 0.2% to $65.08 and $62.09 a barrel, respectively, after settling at a two-week high in the previous trading session.

--Gold prices regained ground in early European trade after futures fell to their lowest level in a week Monday. Continuous gold futures were last up 1% at $3,260.90 a troy ounce.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

May 13, 2025 04:07 ET (08:07 GMT)

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