Global stocks struggle to maintain recent gains

Global stocks struggled to cling to recent gains on Tuesday and the dollar lingered with markets awaiting U.S. data and a slew of corporate and bank earnings for a fresh readout on the health of the world’s largest economy.

European markets struggled for direction with the pan-region Stoxx 600 nudging a touch lower, reflecting key indexes in Germany and France treading water.

The underlying picture was more mixed, with healthy gains in airline and healthcare stocks offsetting losses in telecoms and automotives amid uncertainty as the earnings seasons kicks off.

Asian markets had fared slightly better. MSCI’s AsiaPacific ex-Japan index gained 0.3% as gains in South Korea and Taiwan offset losses in China’s blue-chip CSI300 index, still smarting from Monday’s tepid growth data. It showed the toll the SinoU.S. trade war is taking, even as new data highlighted Beijing’s efforts to boost spending.

Much of the focus was already shifting to the United States, where futures pointed to a flat opening. The U.S. earnings season is kicking off with heavyweights JPMorgan, Goldman Sachs and Wells Fargo all due to report.

Markets also await retail sales data - expected to show a 0.1% rise in June. This comes ahead of major central bank decisions, with the ECB due on July 25 while the U.S. Federal Reserve is expected to deliver a rate cut shortly thereafter.

Oil prices steadied after earlier easing on signs that the impact of a tropical storm on U.S. Gulf Coast production would be short-lived.

Global benchmark Brent crude was flat at $66.45 per barrel and U.S. West Texas Intermediate (WTI) crude at $59.56 per barrel. Trade in gold echoed the cautious tone of equity markets ahead of U.S. data. The precious metal was last down 0.03% on the spot market at $1,413.20 per ounce.