The Reserve Bank of New Zealand delivered back-to-back rate hikes to contain inflation and also signaled further tightening. The Monetary Policy Committee, governed by Anna Breman, decided to raise the Official Cash Rate by 25 basis points to 2.75 percent.

Partly reflecting a steep drop in spending on residential construction, the Commerce Department released a report on Tuesday showing construction spending in the U.S. unexpectedly decreased in the month of July. The report said construction spending fell by 0.5 percent to an annual rate of $2.158 trillion in July after coming in virtually unchanged at a revised rate of $2.168 trillion in June.

A report released by the Institute for Supply Management on Tuesday showed a modest slowdown in the pace of growth in U.S. manufacturing activity in the month of August. The ISM said its manufacturing PMI dipped to 54.6 in August from 55.6 in July, although a reading above 50 still indicates growth. Economists had expected the index to edge down to 55.2.

The euro area manufacturing sector expanded at the strongest pace since 2022 in August, final data from S&P Global showed on Tuesday. The manufacturing Purchasing Managers' Index hit a 51-month high of 52.7 in August from 51.9 in July. The reading was slightly down from the flash estimate of 52.8. Both factory output and incoming new orders increased at their fastest rates since early-2022.

UK mortgage approvals declined to the lowest since early 2024, while consumer credit reached its highest level since late 2025, the Bank of England said Tuesday. The number of mortgages approved in July declined unexpectedly to 56,053 from 58,215 in June. This was the lowest since January 2024.

Eurozone inflation accelerated to the highest level in nearly three years in August, reinforcing expectations for an interest rate hike at the European Central Bank's meeting next week. Inflation advanced to 3.3 percent in August, as expected, from 2.9 percent in July, flash data from Eurostat revealed Tuesday. The rate was the highest since September 2023, when inflation was 4.4 percent.

UK house price growth accelerated in August despite economic uncertainties, data from the Nationwide Building Society showed Tuesday. House prices grew 1.6 percent on a yearly basis, faster than the 1.4 percent rise in July but weaker than economists' forecast of 2.0 percent. Month-on-month, house prices gained 0.2 percent, in contrast to the 0.1 percent fall in July.