Portugal Colonial - Stock markets muted before clues on US rate cuts

"This subdued tone suggests a moderation in investor sentiment following the recent tech-driven buying spree," noted Stephen Innes, managing partner of SPI Asset Management.

Investors were looking ahead to the Federal Reserve's preferred measure of inflation -- the US Personal Consumption Expenditure (PCE) price index -- due for release Thursday.

Expectations on when the Fed may start lowering rates have gradually shifted to the second half of the year, after earlier inflation data came in hot and policymakers await more signs that the pace of price rises was cooling towards the US central bank's two-percent target.

"Investors will be highly attuned to clues about when interest rate cuts may come with key policymakers due to speak later this week" either side of the inflation data, noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Government data Tuesday showed that Japanese consumer inflation slowed for a third straight month in January to two percent, but topped expectations.

While central banks raised interest rates multiple times after global inflation soared in 2022, the BoJ stood firm. It's now seen raising borrowing costs as soon as April, just as peers look to cut rates.

Data out of Germany Tuesday showed shoppers heading into March feeling slightly more optimistic about their future income, but consumer morale remains low overall as a downturn in Europe's largest economy drags on.

Pollster GfK said its forward-looking survey of around 2,000 people stayed roughly stable at minus 29 points for March, after the previous month saw a sharp drop to minus 29.6 points.

- Key figures around 1115 GMT -

London - FTSE 100: FLAT at 7,684.72 points

Paris - CAC 40: FLAT at 7,933.08

Frankfurt - DAX: UP 0.4 percent at 17,495.95

EURO STOXX 50: UP 0.3 percent at 4,877.25

Tokyo - Nikkei 225: FLAT at 39,239.52 (close)

Hong Kong - Hang Seng Index: UP 0.9 percent at 16,790.80 (close)

Shanghai - Composite: UP 1.3 percent at 3,015.48 (close)

New York - Dow: DOWN 0.2 percent at 39,069.23 points (close)

Euro/dollar: DOWN at $1.0852 from $1.0853 on Monday

Dollar/yen: DOWN at 150.32 yen from 150.70 yen

Pound/dollar: DOWN at $1.2682 from $1.2684

Euro/pound: UP at 85.59 pence from 85.54 pence

Brent North Sea Crude: DOWN 0.4 percent at $82.22 per barrel

West Texas Intermediate: DOWN 0.2 percent at $77.40 per barrel

L.Carrico--PC