European stock futures rose while Japanese shares declined, as investors looked ahead to decisions from a slew of central banks this week.
European equity contracts rose 0.4%, following those in Australia and Hong Kong. The Nikkei 225 fell, dragging down the regional index.
Futures for US stocks were steady after the S&P 500 rose 0.1% while the Nasdaq 100 slid 0.5%, as investors continue to rotate out of the tech megacaps that have powered the bull market.
The dollar consolidated after a four-day decline as traders boosted bets the Federal Reserve will deliver a half-point rate cut Wednesday.
Investors have been divided on the magnitude of a reduction, as US economic data have started to weaken, though inflation has remained sticky. US retail sales out later Tuesday may further inform the decision.
“August’s US retail sales report is, arguably, the most important of today’s releases, given that a soft print would likely see participants go ‘all-in’ on the idea of a jumbo 50 basis point Fed cut tomorrow,” wrote Michael Brown, a strategist at Pepperstone Group Ltd., in a note. “Though it’s tough to imagine an equally aggressive paring of dovish bets were the data to beat expectations.”
