World stocks tread water as traders eye Fed pause prospects

European stocks had a mixed start on Tuesday as weak U.S. economic data heightened expectations that the Federal Reserve may not hike interest rates when it meets next week.

The STOXX 600 index rose 0.1% to 460.40, while Germany's DAX was flat, and London's FTSE fell 0.3%. British retail sales growth also slowed in May due to rising food prices, according to the British Retail Consortium. Meanwhile, the Reserve Bank of Australia increased interest rates and warned of further hikes to ensure inflation returns to target.

The Fed, the European Central Bank and the Bank of Japan are all due to hold policy meetings next week.

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