Euro zone industrial production fell by far more than expected in March as output of capital goods plunged, although the sharp reduction appeared to be a result of figures from Ireland, which are typically volatile.

Rapid European Central Bank rate hikes lowered inflation modestly last year but the biggest impact is expected only in 2024, the ECB said in an Economic Bulletin article on Monday, reaffirming a long-held view that policy works with big lags.

Chinese industrial production grew less than expected in April, data showed on Tuesday, further indicating that a post-COVID economic rebound in the country was running dry.

China's April industrial output and retail sales growth undershot forecasts, suggesting the economy lost further momentum at the start of the second quarter and adding to the raft of recent data highlighting a wobbly post-COVID recovery.

U.S. central bankers on Monday signaled they see interest rates staying high and, if anything, going higher, given inflation that may be slow to improve and an economy showing only tentative signs of weakness.

Oil prices rose for a second day early on Tuesday, as U.S. plans to purchase oil for the Strategic Petroleum Reserve (SPR) lent support while raging wildfires in Canada fuelled supply worries.