Commodity markets were steadier after oil and gold won strong support Monday owing to uncertainty over Syria's impact on the wider crude-rich Middle East.

The Paris stock market retreated as French party leaders gathered at President Emmanuel Macron's Elysee Palace office to chart a route towards a new government.

The euro also fell ahead of the European Central Bank's monetary policy meeting on Thursday when it is expected to lower interest rates by 25 basis points amid weak eurozone growth.

Independent analyst Andreas Lipkow said traders were taking a cautious approach ahead of the ECB meeting.

The main US indexes marked time as traders eyed US consumer price inflation (CPI) data due out on Wednesday, which could play a role in whether or not the US Federal Reserve decides to cut interest rates next week.

On Wall Street, "tomorrow's CPI report is in full focus with a looming rate-decision from the Fed coming," analyst Bret Kenwell of trading platform eToro said in a note.

Following recent spending and jobs data "traders have felt even more emboldened to bet on a December rate cut, while the Fed has done little... to quiet that expectation," he added.

US inflation has remained stuck around three percent, however, higher than the Fed's two percent target.

"The Fed is likely to cut interest rates by 25 basis points regardless of the inflation reading, though a hotter-than-expected print could certainly raise some questions," said Matthew Weller, Global Head of Research at FOREX.com and City Index.

The markets are expecting a headline 2.6 percent annual inflation rate and 3.3 percent in "core" inflation which excludes highly variable food and energy prices.

Earlier, stock markets struggled "amid concerns that China's economic stimulus measures might not have a long-lasting effect", noted Dan Coatsworth, investment analyst at AJ Bell.

The growth plan comes as Beijing contemplates Donald Trump's second term in the White House.

The US president-elect has indicated he will reignite his hardball trade policies, fuelling fears of another standoff between the economic superpowers.

The Shanghai stock market ended higher but Hong Kong fell.

Seoul's Kospi index rallied more than two percent after tumbling since President Yoon Suk Yeol declared short-lived martial law on December 3.

On the corporate front, shares in Stellantis rose around one percent on the Paris stock exchange after the car giant and Chinese manufacturer CATL announced plans for a $4.3-billion factory making electric-vehicle batteries in Spain.

Shares in Ashtead slumped 13 percent in London after the industrial-equipment hire group warned over profits and said it plans to switch its main stock listing to key market the United States.

[Copyright (c) Global Economic Times. All Rights Reserved.]