A look at the day ahead in European and global markets from

Ankur Banerjee

Investors are easing off heavy selling of the U.S. dollar

after the Taiwan dollar led a dizzying surge in Asian

currencies over the past two days. Still, the pause keeps the

focus on the ramifications of erratic U.S. trade policy.

The lack of concrete details on any trade deals between the

U.S. and its partners has left investors back where they were:

uncertain, jittery and hungry for good news.

The optimistic sentiment from last week, following Beijing's

statement that it was considering Washington's offer for trade

talks, now seems distant.

European stock futures point to a listless opening as

markets mark time ahead of the Federal Reserve's policy decision

on Wednesday. Although the central bank is likely to keep rates

on hold, what it says will potentially have more sway on

sentiment.

Before this, April's Purchasing Managers' Index (PMI) data

from Europe, due later on Tuesday, will underline the extent of

disruption caused by U.S. President Donald Trump's fluctuating

tariff policies.

Investors are also monitoring European car makers after Ford

Motor ( F ) suspended its annual guidance because of uncertainty

around the United States.

While the Taiwan dollar's unprecedented move has grabbed

attention, other significant currency shifts have occurred

across Asia.

The Malaysian ringgit, for example, surged nearly

1.5% on Monday to its strongest since October. It has weakened

since but remains near the landmark level.

Hong Kong's de-facto central bank stepped into the foreign

exchange market on Tuesday as the currency hit the top end of

its band for a fourth time this month.

The broad selloff in the U.S. dollar this time against Asian

currencies has stoked speculation that regional economies might

be willing to let their currencies strengthen to secure U.S.

trade concessions.

Whether that helps them to get trade deals over the line

remains to be seen.

Key developments that could influence markets on Tuesday:

Economic events: April PMI data for France, Germany, UK and

euro zone

Earnings: Ferrari and Telenor ( TELNF )

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(Editing by Jacqueline Wong)