European shares were mostly lower while the dollar held firm on Tuesday as traders braced for a slate of central bank meetings this week that is likely to see the U.S. Federal Reserve deliver a rate cut and the Bank of Japan stand pat for now.

The bank has been lowering rates since June as inflation slowed, but other risks are growing, including the threat of higher tariffs promised by President-elect Donald J. Trump.

Asia-Pacific markets trade mixed on Tuesday as cautious traders anticipated interest rate decisions from major central banks, including the US Fed, this week. A monthly review of key lending rates in China will also take place in the coming days,