(fxcue news) - European stocks are likely to open lower on Tuesday as investors await the U.S. Labour Department's April consumer price inflation data later in the day for more economic cues. The report may show headline and core CPI remained sticky in April and unchanged from the prior month, threatening interest-rate cuts. After the U.S. and China on Monday announced an agreement to drastically reduce tit-for-tat tariffs for 90 days, major Wall Street banks and traders are now pricing in only two rate cuts for 2025, while significantly pushing back the expected window for the next rate cut. Economists at Goldman Sachs have cut their estimated risk of a recession in the U.S. to 35 percent from 45 percent and said the Trump administration is likely to announce other preliminary trade deals over the next few weeks. U.S. Treasury Secretary Scott Bessent told CNBC's "Squawk Box" on Monday that he expects to meet once again with representatives from Beijing in the "next few weeks" to continue trade negotiations. Meanwhile, in his first public remarks following a breakthrough in U.S.-China trade talks, Chinese President Xi Jinping warned against the dangers of "bullying," "tyranny," and "hegemonism," stating that such actions only lead to global isolation and instability. Asian markets were mixed, with the Hang Seng down more than 1 percent while Japan's Nikkei rose nearly 2 percent to reach a three-month peak, led be electronics and banking stocks. Most Asian currencies edged higher while gold recovered some ground after plummeting over 3 percent on Monday. Oil prices were marginally lower after three days of advances. U.S. stocks surged overnight as Washington and Beijing agreed to drastically reduce the massive tariffs on each other's goods for 90 days, following negotiations over the weekend in Switzerland. The so-called "reciprocal" tariffs that each country had imposed on one another would be cut to 10 percent during the 90-day period while a separate 20 percent tariff imposed in response to the fentanyl national emergency remains in place, resulting in an effective tariff rate on Chinese goods of 30 percent. Both nations also agreed to establish a mechanism to continue important discussions about trade and economics. The tech-heavy Nasdaq Composite soared 4.4 percent and the S&P 500 rallied 3.3 percent to reach their best closing levels in over two months while the Dow climbed 2.8 percent. European stocks also closed on a firm note Monday as investors cheered signs of progress in U.S.-China trade talks. The pan European STOXX 600 climbed 1.2 percent. The German DAX edged up by 0.3 percent to hit a new record high and France's CAC 40 jumped 1.4 percent to reach a six-week high while the U.K.'s FTSE 100 added 0.6 percent.