(fxcue news) - European stocks may drift lower at open on Tuesday as investors ponder the likely impact of U.S. tariff hikes on inflation, economic growth and corporate profits. With U.S. tariffs on automobiles, aluminum, and pharmaceuticals expected in the near future, traders may wait to see how the underlying negotiations play out. Federal Reserve Bank of Atlanta President Raphael Bostic on Monday said he anticipates slower progress on inflation in coming months and therefore sees the Fed cutting its benchmark interest rate only a quarter of a percentage point by the end of this year. As growth worries mount, investors await a slew of U.S. data through the day, including consumer confidence data for March, February's new home sales figures, the Richmond Federal Reserve's manufacturing index for March, and speeches by Fed Governor Adriana Kugler and New York Fed President John Williams for further direction. U.S. Q4 GDP data due on March 27 may provide a clearer picture of how the world's largest economy performed in the final stretch of 2024. Closer home, the release of Germany's IFO Business Climate index may garner some attention. Asian markets were mixed, with Hong Kong's Hang Seng falling more than 2 percent as technology stocks faced selling pressure following Xiaomi Corp's $5.5 billion share sale. The dollar climbed to a three-week high on the yen and was strong across various currencies, while gold was marginally higher as Russia played down expectations for rapid progress in Ukraine peace talks. Oil hovered near a three-week high after rising more than 1 percent in the previous session as U.S. President Trump said he would seek a 25 percent tariff on nations buying crude and gas from Venezuela. U.S. stocks rose sharply overnight after reports emerged that the Trump administration might take a more measured approach on tariffs against U.S. trading partners and could omit a set of industry-specific tariffs. President Trump said that tariffs on automobiles, aluminum and pharmaceuticals are coming soon, and that he may give "a lot of countries" breaks on tariffs, without providing any details. In economic news, data showed U.S. business activity picked up in March, but consumer sentiment deteriorated amidst fears over import tariffs and deep government spending cuts. The Dow rallied 1.4 percent, the S&P 500 surged 1.8 percent and the tech-heavy Nasdaq Composite soared 2.3 percent. European stocks ended mostly lower on Monday, failing to hold early gains. The pan European STOXX 600 slipped 0.1 percent. France's CAC 40 shed 0.3 percent, the U.K.'s FTSE 100 slid 0.1 percent and the German DAX dipped 0.2 percent.