By Anna Isaac
-- European stocks edge up
-- Asian shares mixed
-- U.S. Treasury yields tick down
Global stocks paused on Tuesday as investors took a wait-and-see approach to trade developments and the Federal Reserve's next policy moves.
The Stoxx Europe 600 ticked up 0.1%, with rises in its health-care constituents mostly offset by losses in its basic-resources sector.
Gregory Perdon, co-chief investment officer at Arbuthnot Latham, said, "There's definitely selloff fatigue at the moment. I think we're really just in a sideways summer of trading activity."
Shares in the world's largest miner, BHP Group, dropped 1% after Chief Executive Andrew Mackenzie said the trade dispute between the world's two largest economies had clouded the company's outlook.
In Asia, major indexes were mostly positive or flat, though Hong Kong's Hang Seng slipped 0.2% as recent political protests put pressure on the city's government to enter talks. Japan's Nikkei gained 0.6% and the Korean Kospi jumped more than 1%.
On Monday, President Trump resumed his social-media criticism of the U.S. central bank, saying it had showed "horrendous lack of vision." He said the Fed should instigate a rate cut of 1%, a level of action normally associated with a severe downturn. He also called for a package of measures such as quantitative easing to stimulate the economy and efforts to address dollar strength.
Investors will pay close attention to the minutes from the Federal Reserve's latest meeting on Wednesday, as well as any statements from Chairman Jerome Powell ahead of the economic symposium in Jackson Hole, Wyo., starting on Friday.
The U.S. dollar was unchanged on Tuesday, holding on to its recent gains. It would likely stay strong ahead of the gathering, said Fritz Louw, currency analyst at MUFG bank.
"There's nothing ahead of the week that is going to weaken the dollar. If there isn't dovish capitulation from the Fed on Friday then we will see more dollar strength," he said.
In that case, "there would likely be some more pressure from Mr. Trump," he added.
White House officials also said Monday they were weighing a range of actions that could boost business and spending activity.
However, Arbuthnot Latham's Mr. Perdon said that sharp downturn fears and the need for rate cuts may have been overblown, adding that the response to the financial crisis from the Fed continued to distort bond-yield curves, he said.
"I would be surprised if members of the Fed would allow themselves to get overly intimidated by the rhetoric," he said.
Yields on U.S. 10-year Treasurys edged down to 1.581% Tuesday, from 1.603% on Monday when they saw their biggest gain since July 5. Bond yields fall as prices rise.
On the earnings front, results are due on Tuesday from Home Depot and Medtronic.
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