A look at the day ahead in European and global markets from Ankur Banerjee

Investors have taken in stride the Moody's U.S. credit rating downgrade and are back pining for trade deals as a distinct lack of agreements from negotiations keep them on edge with the clock ticking on the United States' 90-day pause.

U.S. President Donald Trump's so-called reciprocal tariffs will kick in again in early July and negotiators across the globe have been scrambling to firm up trade deals with the world's biggest economy.

And yet, successful deals have been scarce.

Headlines so far have only added to the tentative mood, with the U.S. Treasury not expecting any deal announcements during a Group of Seven finance leaders meeting this week in Canada.

Japan's top trade negotiator said there was no change to Tokyo's stance of demanding the elimination of U.S. tariffs.

After an initial selloff in Treasuries on Monday cast a shadow on markets in the wake of Moody's shocking but somehow not totally unexpected decision, markets in Tuesday Asian hours have somewhat steadied.

U.S. Treasury yields remain elevated but are not rising rapidly and the U.S. dollar is drifting near recent lows against major rivals but equities are feeling perky.

European futures indicate a strong open on Tuesday after a flat close in the previous trading session. With the economic calendar in Europe pretty bare, investors will be fixated on any information about trade deals.

Over in Asia, the big news was China cutting key benchmark lending rates for the first time since October on Tuesday. Major state banks also lowered deposit rates as authorities work to ease monetary policy to help buffer the economy.

The Australian dollar was little changed in choppy trading after the Reserve Bank of Australia cut interest rates as expected.

In the absence of concrete news, geopolitical worry may take the spotlight.

Trump said after a call on Monday with Russian President Vladimir Putin that warring neighbours Russia and Ukraine will immediately start negotiations for a ceasefire.

But the Kremlin said the process would take time and Trump indicated he was not ready to join Europe with fresh sanctions to pressure Moscow.

Key developments that could influence markets on Tuesday:

* Economic events: Germany producer prices for April, eurozone consumer confidence data for May * Earnings: Vodafone, Diploma

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(By Ankur Banerjee; Editing by Christopher Cushing)