European markets retreated slightly on Tuesday morning as global investors waited for US inflation data, which could inform the Federal Reserve of the timing of monetary stimulus cuts.

The pan-European Stoxx 600 slid 0.25% in early trade, with mining stocks down 1.8% to lead losses as all sectors fell into negative territory except cars which added 0.7%.

The US Consumer Price Index for August will be released at 13:30 London time and is expected to show that US inflation continues to rise . The latest release comes after US producer prices jumped 8.3% year-on-year in August, the biggest annual increase since records began in November 2010.

Asia-Pacific stocks were also mixed on Tuesday as investors awaited data, with tighter Chinese regulation also a key point for investors in the region, according to Malaysia's Exness Forex Broker.

In the US, stock index futures were little changed in the early pre-market on Tuesday after the S&P 500 broke a five-day losing streak and ended Monday's session in positive territory.

Meanwhile, House Democrats in Washington proposed new tax increases for individuals and businesses to fund a $3.5 trillion spending package.

Back in Europe, European Central Bank chief Isabel Schnabel said on Monday that the ECB is ready to act if inflation does not fall as soon as next year, as currently expected.

The consequences of Brexit continue to rumble, with Britain again threatening on Monday to unilaterally suspend the Northern Ireland protocol, a key tenet of the withdrawal agreement, unless the European Union renegotiates to iron out problems with its implementation.

As for individual share price performance, British retailer JD Sports was up 7.1 per cent in early trading on Tuesday and outperformed the Stoxx 600 after reporting a seven-fold rise in first-half profits.

"While the relaunch and termination of government support schemes could undermine future confidence for many retailers, JD Sports should continue to benefit as demand for trainers and sporting goods remains strong and will continue as a tailwind in the near future," said Amisha Chohan. equity research analyst at Quilter Cheviot.

"It is therefore not surprising that the group now expects full-year pre-tax profits of at least £750m, up from the previous forecast of at least £550m and 25% ahead of market expectations."

At the bottom of the index, Allfunds Group is down 4% following the share offering.

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