(fxcue news) - European stocks look set to open on a mixed note Wednesday, after having suffered heavy losses in the previous session amid much uncertainty over how U.S.-President-elect Trump's tariff proposals and Fed's restrictive monetary policy will impact markets. Fed Minneapolis President Neel Kashkari on Tuesday said he'll be watching the inflation data closely to determine how far the Fed should go in cutting the benchmark for short-term borrowing costs. Richmond Fed President Thomas Barkin called the current level of rates "somewhat less restrictive" than it had been, and said the Fed is currently in a position to respond appropriately regardless of how the economy evolves. The highly anticipated Labour Department's report on consumer price inflation for October is due later in the day. Trading activity in bond markets point to a stronger CPI number, which could dampen hopes for another interest-rate cut at the U.S. central bank's December meeting. The CPI report along with reports on U.S. producer price inflation, retail sales and industrial production due later in the week may provide further insights into the state of the economy and potential interest-rate cuts. Asian markets followed Wall Street lower, the dollar held firm and gold traded higher above $2,600 per ounce while oil steadied near its lowest level this month, as OPEC cut its forecast for global oil demand growth in 2024. U.S. stocks fluctuated before ending slightly lower overnight as investors booked some profits from a post-election rally ahead of closely watched economic data due later in the week. The S&P 500 dipped 0.3 percent to snap a five-session winning streak and log its worst day since Oct. 31 as Treasury yields surged in anticipation that Donald Trump's pledged policies on tariffs will rekindle inflation and keep U.S. interest rates high. The Dow shed 0.9 percent and the tech-heavy Nasdaq Composite slid 0.1 percent. European shares fell sharply on Tuesday as ECB policymakers warned that Trump's protectionist policies would put upward pressure on inflation and hamper global growth. The pan-European STOXX 600 plummeted 2 percent. The German DAX lost 2.1 percent, France's CAC 40 tumbled 2.7 percent and the U.K.'s FTSE 100 gave up 1.2 percent.