(Updates at 0804 GMT)

By Tom Westbrook and Samuel Indyk

LONDON, April 9 (Reuters) - Global shares were mixed on

Tuesday ahead of this week's U.S. inflation reading and a

crucial European Central Bank meeting, while industrial metals

prices extended recent gains on expectations of a worldwide

manufacturing rebound.

The pan-European STOXX 600 index fell 0.1% in early

trade, while futures on Wall Street were muted.

"Stock markets seem to be in a holding pattern at the moment

and I think that will continue until we get more clarity on

inflation and the state of the economy," said Dan

Boardman-Weston, CIO at BRI Wealth Management.

"Markets are waiting to see what the inflation print is and

how that changes expectations for rate cuts going forward."

Expectations for U.S. rate cuts have been receding this year

on the back of robust economic data and sticky inflation

readings.

Traders are now pricing around 62 basis points (bps) of cuts

from the Federal Reserve in 2024, implying around two or three

quarter-point cuts, down from around 150 bps at the start of the

year.

"For now at least, the main theme has been the continuation

of last week's trends, including more and more doubts about rate

cuts this year, and growing fears about inflation," Deutsche

Bank strategist Jim Reid said.

It's a similar story in Europe, where the focus is on

Thursday's ECB policy announcement, with markets expected to

scour comments from President Christine Lagarde for hints that

rates could be cut in June.

Germany's 10-year bund yield dipped to 2.415% on

Tuesday after touching a three-week high of 2.457% the day

before, while the euro held firm at $1.0855.

The yen, meanwhile, continues to face heavy pressure as

investors see any lags in global rate cuts as leaving the gap

wide with Japan's near-zero interest rates.

At 151.915 per dollar, the yen is a whisker from

last month's 34-year low of 151.975. Against the euro, the yen

is at its weakest for three weeks at 164.97.

Japanese Finance Minister Shunichi Suzuki said authorities

would not rule out any options in dealing with excessive yen

moves, repeating his warning that Tokyo is ready to act against

the currency's recent sharp declines.

"We expect (Japan) to intervene above 152, but not

immediately on a break," Standard Chartered strategist Steve

Englander said in a note to clients.

METALS FLY

Meanwhile, industrial metals prices extended their gains on

Tuesday amid expectations of a worldwide manufacturing rebound,

while shares in the Asia-Pacific region rose.

MSCI's broadest index of Asia-Pacific shares outside Japan

increased 0.6%. Japan's Nikkei 225 rose

1.1%

In Shanghai, the most-traded May copper futures

rose more than 1% to a record high, while zinc and tin

made multi-month peaks and aluminium traded

just below Monday's two-year top.

Even iron ore, battered by China's property

downturn, steadied above $100 a tonne in Singapore.

"It's pretty much a China bet," said Vishnu Varathan, head

of economics at Mizuho Bank in Singapore.

"It's coincided with a global manufacturing bottoming, and I

think that plays well into China's industrial recovery. That

aspect of it is a broader-based story for metals."

On Monday, data showed German industrial production rose

more than expected in February.

Last week, data showed U.S. manufacturing growing for the

first time in one-and-a-half years. China's manufacturing

activity expanded for the first time in six months in March.

Meanwhile, spot gold hit another record high,

supported by central bank buying and heightened geopolitical

tensions, according to BRI's Boardman-Weston.

"I think the rally may continue in the short-term," he said.

"There are a few reasons why it has moved up and I think it

has legs behind it."