European Shares Seen Tad Higher At Open

(RTTNews) - European stocks may open a tad higher on Tuesday despite concerns that higher oil prices may add to inflationary pressures and provide more of a dampening effect on the global economy.

Asian markets were seeing modest gains as a surprise announcement of output cuts by major oil producers and weak U.S. manufacturing data released overnight added to economic uncertainty.

Earlier today, the Reserve Bank of Australia (RBA) has pressed pause on its historic cycle of interest rate hikes for the first time in nearly a year, saying it wants to see the lag effects of prior rate increase low through the economy.

The dollar was slightly higher, tracking some recovery in Treasury yields. Oil extended overnight gains while gold slipped after rising 1 percent on Monday.

The economic calendar remains light, with foreign trade data from Germany and unemployment figures from Spain due later in the day.

U.S. stocks ended higher overnight as investors weighed weak manufacturing data against climbing oil prices.

Market participants believed that the decrease in oil production as a result of the OPEC+ move will largely be offset by falling demand.

The Dow gained 1 percent and the S&P 500 edged up 0.4 percent while the tech-heavy Nasdaq Composite shed 0.3 percent.

European stocks ended Monday's session on a mixed note, failing to hold early gains led by energy stocks.

The pan European STOXX 600 finished marginally lower as data showed activity at struggling factories across the eurozone fell further last month.

The German DAX slipped 0.3 percent, while France's CAC 40 rose 0.3 percent and the U.K.'s FTSE 100 gained half a percent.