(fxcue news) - European stocks are seen opening broadly lower on Tuesday as investors await key German and U.S. inflation readings this week for more cues on interest rate cuts. British pay growth and joblessness figures due later in the day could indicate easing inflationary pressures, potentially paving the way for more interest rate cuts from the Bank of England. The European Central Bank is expected to lower borrowing costs for a second time this year on Thursday due to falling inflation and sluggish growth. The U.S. CPI data is due on Wednesday and the PPI on Thursday. The readings could offer hints about the size of the Federal Reserve's interest rate reduction next week. CME Group's FedWatch Tool currently indicates a 73 percent chance the Fed will lower rates by 25 basis points and a 29 percent chance of a 50-basis point rate cut. Meanwhile, with the U.S. election nearing, Democrat Kamala Harris and Republican Donald Trump will face off in debate for the first time later today. Asian markets were muted as investors reacted to rising Sino-U.S. tensions and mixed Chinese trade data. The U.S. House of Representatives on Monday passed a bill that aims to restrict business with several Chinese biotechnology companies. Data showed China's exports grew by 8.7 percent in U.S. dollar terms in August from a year ago, beating expectations. Imports grew by just 0.5 percent, missing expectations. The dollar was steady in Asian trading and gold edged down marginally as investors waited for Federal Reserve's next move. Oil traded slightly lower after climbing on Monday due to supply disruptions from Tropical Storm Francine. U.S. stocks rose sharply overnight following last week's steep losses on uncertainty over the U.S. economic outlook. The Dow, the tech-heavy Nasdaq Composite and the S&P 500 all surged around 1.2 percent as debate swirled around the scale and speed of potential rate cuts by the Federal Reserve. European stocks closed on a firm note Monday to snap a five-day losing streak. The pan-European STOXX 600 rose 0.8 percent. The German DAX climbed 0.8 percent, France's CAC 40 added 1 percent and the U.K.'s FTSE 100 gained 1.1 percent.