Shares mixed, euro dips as tariff costs counted

Wall Street futures pointed to a buoyant open on Tuesday ahead of earnings reports from a number of companies and the Federal Reserve's policy meeting that starts later in the day.

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S&P 500 futures ticked up 0.3%, while Nasdaq futures added 0.5%, riding on hopes for upbeat results from mega caps this week that include Apple, Meta Platforms, Microsoft and Amazon.

The dollar index climbed 0.4% to 98.951 after the rush out of short dollar positions lifted it 1% overnight, while it eased a one-week high on the yen to stand at 148.69.

Yields on 10-year Treasuries inched up 3 basis points to 4.392%, having crept higher on Monday as markets braced for another steady decision on interest rates from the Federal Reserve.

Futures imply a 97% chance the Fed would keep rates at 4.25%-4.5% at its meeting on Wednesday and reiterate concerns that tariffs will push inflation higher in the short term.

Analysts also assume one, or maybe two, Fed officials will dissent in favour of a cut and supporting wagers for a move in September.

The odds could change depending on a slew of US data this week including gross domestic product for the second quarter, where growth is expected to rebound to an annualised 2.4%, after a 0.5% contraction in the first quarter.