· European stocks traded lower Tuesday as diminished hopes of a rate cut from the U.S. Federal Reserve this month continue to dampen investor sentiment.

The pan-European Stoxx 600 fell 0.4% during the morning session, chemicals stocks shedding 1.6% while autos and basic resources both fell by more than 1%. Utilities stocks were the strongest performer with a0.6% gain.

Markets are struggling to shrug off sharply reduced expectations that the Fed will deliver a large rate cut by the end of the month, following surprisingly strong U.S. job growth for June.

· Asian stocks fell to their lowest levels in two and a half weeks on Tuesday as hopes dwindled for a hefty interest rate cut by the U.S. Federal Reserve at the end of the month, while technology companies were pulled lower by Apple Inc’s overnight slump.

Investors have rushed to scale back Fed rate cut expectations following unexpectedly strong gains in U.S. jobs for June, with U.S. stock markets falling for a second straight day.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5% to its lowest since June 20.

· Investors’ focus is shifting to Fed Chairman Jerome Powell’s testimony before Congress later in the week for clues on monetary policy.

Foreign investors turned net buyers of Asian stocks in June as optimism ahead of a meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, along with expectations of U.S. interest rate cuts bolstered sentiment.

Overseas investors purchased a net $4.2 billion worth of equities in June, data from stock exchanges in South Korea, Taiwan, India, Thailand, Philippines, Indonesia, and Vietnam showed.

· Japan’s Nikkei share average eked out small gains on Tuesday but the broader market fell as Apple suppliers and other technology firms dropped in step with Apple.

The Nikkei share average rose 0.14% to 21,565 while the broader Topix fell 0.22% to 1,574.89, with small cap shares hit the most.

The Nikkei has been stuck in a narrow range between 21,500 and 21,800 this month as investors seek more clarity on the U.S. Federal Reserve’s policy and as the global economic outlook.

· Chinese stocks ended lower on Tuesday, tracking overnight weakness on the Wall Street, after strong U.S. jobs data dimmed hopes of an aggressive rate cut by the Federal Reserve.

Sentiment was also curbed by a slew of initial public offerings being launched this week by companies to be listed on Shanghai’s Nasdaq-style tech board.

The blue-chip CSI300 index ended down 0.3% at 3,793.13, while the Shanghai Composite Index closed 0.2% lower at 2,928.23 points.

Nine Chinese companies, among the first to float on China’s red-hot Nasdaq-style tech board, announced prices of their new share offers on Tuesday, as investors brace for a busy week of initial public offerings

Reference: CNBC, Reuters