European Shares Poised For Muted Open

(RTTNews) - European stocks are seen opening on a muted note Tuesday as weak U.S. data released overnight reinforced hopes that the Federal Reserve may skip an interest-rate hike at the end of a policy meeting next week.

Key inflation reports are also likely to be in the spotlight next week, as the data could impact whether the Fed resumes its rate hikes next month.

The European Central Bank is also due to next week and President Christine Lagarde has already reaffirmed that it was too early to call a peak in core inflation despite "signs of moderation".

Asian markets traded mixed while the Aussie dollar jumped to its highest since mid-May after the Reserve Bank of Australia lifted its official interest rate by 25 bps to 4.1 percent, a level not seen since early 2012.

Gold attempted a recovery as the dollar index retreated amid a blackout on Fed speakers, heading into next week's Fed meeting.

Oil prices fell in cautious trade as concerns about global economic recovery overshadowed indications of supply remaining tight.

In economic releases, German factory orders data, U.K. all-sector PMI numbers and Eurozone retail sales figures are awaited later in the day.

U.S. stocks ended a choppy session lower overnight after data showed growth slowed in the country's services sector in May and new orders for manufactured goods rose by slightly less than expected in April.

The Dow fell 0.6 percent, the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite finished marginally lower.

European stocks closed lower on Monday as data showed a slowdown in Eurozone private sector growth.

The pan European STOXX 600 shed half a percent. The German DAX dropped half a percent, France's CAC 40 lost 1 percent and the U.K.'s FTSE 100 ended little changed with a negative bias.