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European Shares Seeking Rebound Ahead Of OPEC And BoE Meetings

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European stocks look set to rebound from three-week lows hit the previous day, although a burgeoning trade war between the U.S. and China showed little signs of slowing down.

Asian stocks recovered from early losses to trade mostly higher even as Chinese markets extended a rout from the previous day on fears of a full-blown Sino-U.S. trade war.

Helping ease concerns about the outlook for the world's second-largest economy, the People's Bank of China said in a working paper on Tuesday that China should appropriately reduce its reserve requirements to ease burdens on financial institutions and smooth the interest rate transmission mechanism.

The central bank also injected funds into the financial system via its medium-term lending facility to offset liquidity pressure.

The dollar steadied against a basket of currencies as risk aversion ebbed. U.S. crude futures recovered losses from the previous day after API data showed a drop in U.S. commercial crude inventories.

Meanwhile, with Iran signaling that OPEC may fail to agree on output limits, production policy is likely to dominate agenda during the upcoming OPEC/non-OPEC meeting in Vienna on June 22.

Federal Reserve Chairman Jerome Powell, European Central Bank President Mario Draghi, Bank of Japan Governor Haruhiko Kuroda and Reserve Bank of Australia Governor Philip Lowe are due to participate in a panel discussion at the ECB Forum later today.

The Bank of England and Swiss National Bank are meeting on Thursday, but no rate hikes are expected.

Overnight, U.S. stocks closed firmly in the red following a global rout as growing tensions between the U.S. and China spooked investors.

The Dow Jones Industrial Average lost 1.2 percent to extend losses for the sixth day running, while the tech-heavy Nasdaq Composite shed 0.3 percent and the S&P 500 eased 0.4 percent.

European markets tumbled on Tuesday to finish at three-week lows as trade tensions escalated and ECB President Mario Draghi said the bank will exercise patience over its first interest rate hike.

The pan-European Stoxx Europe 600 Index fell 0.7 percent to mark its lowest close since May 31. The German DAX lost 1.2 percent, France's CAC 40 index declined 1.1 percent and the U.K.'s FTSE 100 gave up 0.4 percent.

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