European stocks are set to edge lower on Tuesday as investors await the release of the FOMC minutes and a speech from Fed Chairman Ben Bernanke before the Joint Economic Committee of Congress on Wednesday for cues on the Fed's stance on continuing its easy monetary policy. The dollar retreated from a six-week high against the euro amid speculation that Bernanke would not hint at tapering bond purchases this week. Investors also look forward to a speech by ECB President Mario Draghi in London on Thursday.
The Japanese yen slipped against its major rivals as investors turned their eyes to the Bank of Japan's two-day monetary policy meeting starting today. The Bank of Japan is expected to keep its monetary policy unchanged and stick to its aggressive approach in achieving the 2 percent target for inflation. Investors will pay close attention to BOJ Governor Haruhiko Kuroda's currency-related comments following the policy meeting.
While speaking at a press conference after the government's regular Cabinet meeting, Japan's economy minister Akira Amari said that he expects the currency levels to stabilize at a point matching the basic strength of Japanese economy.
The Asian markets are broadly lower on apprehensions about the likely stance of Fed policy in the coming months. Benchmark indexes in Australia, Hong Kong, Indonesia and Singapore are down over half a percent each, while the markets elsewhere are trading mixed showing little change. The U.S. economy is performing pretty well right now, but there are no signs the Fed will turn off its monetary stimulus as soon as this summer, Reserve Bank of Chicago President Charles Evans said in a speech in Chicago on Monday.
In economic releases, German producer price inflation slowed for the third consecutive month in April, data released by the Federal Statistical Office revealed. Producer prices rose 0.1 percent in April from a year ago, following a 0.4 percent increase in March. This was the lowest annual rate since March 2010.
Producer and consumer price data from the U.K. are slated for release later in the session. Annual inflation is forecast to slow to 2.6 percent in April from 2.8 percent in March. Output prices are forecast to fall to 1.4 percent from 2 percent in the previous month, while input prices are expected to drop to 0.3 percent from 0.4 percent.
In corporate news, Cruise operator Carnival Corporation lowered its full year 2013 earnings guidance, citing lower net revenue yield expectations.
Royal Imtech NV, a provider of technical services in various fields, reported an annual loss attributable to shareholders of 233 million euros compared to a profit of 95.8 million euros last year, as expenses mounted amid write-offs.
United Internet AG reported first-quarter earnings before interest and taxes of 68.3 million euros, up 41.4 percent from 48.3 million euros last year. The company also confirmed its forecast for 2013 as a whole.
European stocks gained ground in muted holiday trading on Monday, with automakers leading the gainers after a broker upgrade. Several European markets were closed for the Pentecost holiday. The German DAX rose 0.7 percent and France's CAC 40 gained half a percent, while the U.K.'s FTSE 100 added a percent to hit its highest level since September 2000.
The major U.S. averages slipped about 0.1 percent each in thin trading overnight as traders were reluctant to make any significant moves amid a lack of major U.S. economic data.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.