European stocks edged higher following fresh highs for US equities as traders held to bets the Federal Reserve will cut interest rates this year.
Treasuries were steady, with yields on two-year securities hovering near a three-month low on bets they would more likely benefit from policy easing. A gauge of the dollar was little changed. Further Congressional testimony by Powell on Wednesday, and key US inflation and jobs data tomorrow, may provide further clues on the policy path.
Elsewhere, Japanese stocks advanced, while those in China and Australia declined, leaving a gauge of the region’s shares little changed.
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