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Marketmind: Powerless

A look at the day ahead in European and global markets from Anshuman Daga

Just as missile attacks fuel worries of emergency blackouts in Ukraine, global equities are also feeling the pain from U.S. economic data that is stoking fears the Fed could go higher for longer.

Treasury yields are up, the dollar is standing firm after its biggest rally in two weeks and risk-off sentiment is holding sway.

For the euro zone, however, there is little in the way of good news. Business activity declined for a fifth month in November, indicating the economy was headed for a mild recession as consumers slash spending amid surging inflation.

Industrial orders data from Germany, the biggest economy in the euro zone, is the only economic indicator worth watching on Tuesday.

Global economic activity flashes red

While the euro bloc's economy remains fragile, economists still expect the European Central Bank to add 50 basis points to its deposit rate next month as it attempts to fight runaway inflation.

Down Under, Australia's central bank raised interest rates to a 10-year high and stuck with its projection that more hikes are needed.

Meanwhile, British consumer spending edged up last month at a rate that greatly lagged inflation, according to surveys on Tuesday that highlighted the pressure on household budgets ahead of Christmas.

In the cryptocurrencies world, Britain's Treasury is finalising plans for a package to regulate the industry, including limits on foreign companies selling into the country and restrictions on advertising, the Financial Times reported.

The campaign to shore up investor confidence on Credit Suisse goes on. Chairman Axel Lehmann told media the embattled bank is "definitely stable" and has seen a stabilisation in client funds outflows.

This comes days after the bank reported sharp outflows as wealthy clients move assets elsewhere, while it focuses more on its flagship wealth management franchise and pruning its investment banking business.

In news outside the markets, Prince Harry said Britain's royal household regularly leak stories about each other, calling it a "dirty game".

ISM services PMI

Key developments that could influence markets on Tuesday:

Economic data: German Oct industrial orders data

(Reporting by Anshuman Daga; Editing by Sam Holmes)