European shares wobbled 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.

European markets are heading for a negative open Tuesday as central banks take center stage this week. The U.K.'s FTSE 100 index is expected to open 18 points lower at 8,240, Germany's DAX down 22 points at 20,291, France's CAC down 12 points at 7,342 and Italy's FTSE MIB down 129 points at 34,618, according to data from IG.

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,