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

Gregor Stuart Hunter

The yen is again hovering close to its weakest levels in 40

years with the threat of joint intervention looming large after

Japan's finance minister and the U.S. Treasury secretary held an

online meeting to discuss global financial market conditions.

The yen was trading at 161.60 per dollar in the Asian

morning on Tuesday, its weakest level in two years, after moving

within a few pips of levels not seen for decades during U.S.

trading hours.

Intervention by the Ministry of Finance since April and rate

hikes from the Bank of Japan have done little to arrest the

slump in the currency.

Elsewhere, South Korean shares fell more than 6% after

the country's finance minister, Koo Yun-cheol, said at a cabinet

meeting on Tuesday that the current foreign exchange level at

around mid-1,500 won per U.S. dollar is "excessive."

Losses for the KOSPI index, which closed at a record

high on Monday, triggered a brief trading halt and dragged

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

1.5% lower.

Japan's Nikkei 225 retreated 1.2%, pulling back after an

eight-day winning streak, even as data on Tuesday showed the

country's manufacturing sector sustained robust growth in June,

with a gauge of new orders surging to the fastest pace in more

than four years.

Brent crude was 0.4% lower at $77.56 a barrel after the

United States waived sanctions on Iran for 60 days from Monday

after the first talks under a nascent peace deal, while

officials reported a sustained lull in fighting in Lebanon under

the agreement aimed at ending hostilities across the region.

S&P 500 e-mini futures were down 0.5%, extending

declines after tech megacaps weighed on stocks on Wall Street on

Monday.

In early European trades, pan-region futures were down

0.6%, German DAX futures were 0.7% lower and FTSE

futures fell 0.8%.

Key developments that could influence markets on Tuesday:

Company earnings:

FedEx ( FDX ), Cerebras Systems ( CBRS ), Carnival Corp ( CCL )

Economic events:

France: Business Climate for June, S&P MFG Flash PMIs for

June

Germany: S&P Flash PMIs for June

Euro zone: S&P Flash PMIs for June

UK: Flash PMIs for June and CBI Trends for June

Debt auctions:

Germany: 2-year government debt