San Francisco Frontiers - Stocks struggle in subdued deals amid US holiday

Oil rebounded from losses the previous day, when key producers Saudi Arabia and Russia unexpectedly unveiled more output cuts in a bid to stabilise the market.

The dollar rose against the euro but fell against the yen, as investors awaited Wednesday's publication of minutes from the Federal Reserve's most recent monetary policy meeting.

Friday's key US nonfarm payrolls (NFP) report will provide clues on the health of the world's biggest economy.

- 'Struggling for direction' -

"European stocks are struggling for direction amid a light economic calendar and on thin volumes with the US markets closed for Independence Day," City Index analyst Fiona Cincotta told AFP.

"We expect volumes to pick up again... ahead of Friday's NFP."

This week sees also minutes from the Federal Reserve's last rate-setting meet.

Investors weighed signs of a slowing US economy against hopes that the Fed's interest-rate hiking cycle could be nearing its end.

Data showing a sharp drop in the central bank's preferred gauge of inflation for May fuelled a rally across equities in New York late last week and in Asia on Monday.

The readings followed a series of indicators suggesting the economy remained in good health, putting pressure on the Fed to keep tightening monetary policy.

Fed chairman Jerome Powell has warned more hikes are in the pipeline owing to still-elevated inflation and the strong labour market, though analysts question whether it will follow through with that.

Wall Street limped to a positive close in a half-session on Monday, with traders winding down for the holiday.

In Asia on Tuesday, Hong Kong, Shanghai, Wellington, Taipei, Manila, Mumbai and Bangkok edged up, but Tokyo, Singapore and Seoul dipped.

Sydney got a lift from the Reserve Bank of Australia's decision to leave interest rates unchanged, though the local dollar fell against the greenback.

- Oil demand concerns -

Oil on Monday initially rallied after Riyadh and Moscow curbed production levels, but finished in the red.

While the cuts will mean tighter supplies, rising interest rates and the lingering threat of recession are weighing on demand expectations.

"The oil market continues to weigh up Russia and Saudi Arabia's production cuts against a deteriorating economic backdrop," Cincotta added Tuesday.

"After a decline in oil prices yesterday, the net impact of the surprise production cuts has been approximately zero, highlighting the market's concerns over the demand outlook."

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.2 percent at 7,541.95 points

Paris - CAC 40: DOWN 0.1 percent at 7,381.06

Frankfurt - DAX: DOWN 0.3 percent at 16,041.64

EURO STOXX 50: FLAT at 4,396.79

Tokyo - Nikkei 225: DOWN 1.0 percent at 33,422.52 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 19,415.68 (close)

Shanghai - Composite: FLAT at 3,245.35 (close)

New York - Dow: FLAT at 34,418.47 (close)

Euro/dollar: DOWN at $1.0903 from $1.0912 on Monday

Pound/dollar: UP at $1.2707 from $1.2693

Dollar/yen: DOWN at 144.41 yen from 144.68 yen

Euro/pound: DOWN at 85.78 pence from 85.97 pence

Brent North Sea crude: UP 1.1 percent at $75.46 per barrel

West Texas Intermediate: UP 1.1 percent at $70.58 per barrel

burs-rfj/bcp/lth

J.Scott--SFF