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European stocks are likely to open lower on Tuesday, as investors weigh the outlook for economic recovery and monetary policy against the threat posed by a fresh coronavirus<\/span> wave in the United States.<\/p>\n Earlier today, the Bank of Japan lifted its inflation forecast, mainly reflecting a rise in commodity prices amid pandemic uncertainty.<\/p>\n The central bank stressed its resolve to maintain its ultra-loose monetary policy, saying that risks to economic activity are skewed to the downside for the time being, mainly due to the impact of Covid-19.<\/p>\n Central banks in Indonesia, Malaysia, Norway, Turkey, and Ukraine will hand down their policy decisions later this week. <\/p>\n Asian markets<\/span> slipped in cautious trade, pressured by higher U.S. Treasury yields. <\/p>\n The two-year U.S. yield rose past 1 percent for the first time since February 2020, and the 10-year and 30-year yields also surged as cash trading restarted after Monday’s holiday. <\/p>\n Gold eased on dollar strength while Brent reached the highest level since 2014 amid rising geopolitical tensions in the Middle East. <\/p>\n It’s a busy day ahead on the Eurozone’s economic calendar, with ZEW Economic Sentiment figures for Germany and the Eurozone likely to be in focus. <\/p>\n Across the Atlantic, NY Empire State Manufacturing numbers are due out later in the session.<\/p>\n The focus will remain on earnings, with results from Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., UnitedHealth Group Incorporated and Netflix Inc. due throughout the week.<\/p>\n U.S. markets were closed on Monday in observance of the Martin Luther King Jr. Day holiday.<\/p>\n European stocks closed Monday’s session on a firm note, with deal talks and the Chinese central bank’s decision to cut interest rate helping underpin sentiment.<\/p>\n The pan European Stoxx 600 climbed 0.7 percent. The German DAX rose 0.3 percent, France’s CAC 40 index added 0.8 percent and the U.K.’s FTSE 100 jumped 0.9 percent. <\/p>\n<\/p>\n<\/div>\n