Ukadike Micheal

Canada's main stock index futures were flat on Tuesday due to gold declines and oil price rebounds. Investors remained cautious ahead of the U.S. Federal Reserve interest rate decision and key domestic economic data.

In early trading on Tuesday, European stocks remained stable as investors assessed a multitude of earnings reports, which included varied performances from companies like HSBC, Volkswagen, and Stellantis.

A group of exchange-traded funds focused on cryptocurrency will launch in Hong Kong on Tuesday, introducing potential competition for US Bitcoin offerings that fueled a historic surge in the digital currency's value.

On Tuesday, the yen weakened against the dollar, retracting a portion of its significant gains from the prior day, which were triggered by suspicions of intervention by Japanese authorities.

The Treasury's unexpected plan to borrow more this quarter has sparked market attention and briefly impacted bond values. Despite initial concerns, the focus on short-term debt issuance offers stability.

Tuesday saw a mixed performance in Hong Kong's stock market, influenced by lackluster earnings from China's leading banks, which exerted downward pressure on the city's main index.

April saw French inflation persisting above forecasts, casting doubt on the speed of price pressure alleviation amidst sustained wage growth and a burgeoning economic activity.

After a significant surge in the yen, speculation arose regarding intervention, with Japan's currency official choosing not to disclose any actions taken. The dollar-yen exchange rate experienced a 2% drop amidst market uncertainty.

The Federal Reserve's upcoming meeting is expected to maintain a cautious stance on interest rates, with attention shifting to its balance sheet strategy. Investors await insights into inflation trends and potential adjustments to monetary policy.

Euro zone government bond yields eased as investors awaited the Federal Reserve meeting and inflation data for the bloc, following reduced bets on European Central Bank rate cuts last week.