Global stock markets mostly fell for a second session running Tuesday as traders booked profits before updates on the US economy this week, notably a key inflation reading.

World stock markets, including in New York, made solid gains in recent weeks on hopes that the Federal Reserve had finished with hiking rates and could cut borrowing costs next year as inflation cools.

Wall Street edged lower at the open, but Briefing.com analyst Patrick O'Hare said there is nothing in particular behind the negative sentiment.

"It appears to be a case of buyer exhaustion following four straight weeks of gains," he said in a note to investors before the start of trading.

A string of recent US indicators pointing to a slowing economy — as well as a below-forecast rise in consumer prices — have fuelled optimism that the Fed will stop hiking.

On Monday, data for US new home sales missed expectations, pointing to higher interest rates having an impact on buyers.

Investors will Thursday pore over the closely watched personal consumption expenditures (PCE) price index, the Fed's preferred guide on inflation.

They will be keeping an eye also on several other US pointers this week, including consumer confidence and gross domestic product.

Additionally, a number of Fed officials were lined up to talk, including boss Jerome Powell, though they are expected to stick to their long-running line that policy decisions will be based on data, and that they see rates staying higher for longer to tame inflation completely.

"The market appears to have embraced the idea that slowing economic data will hasten the arrival of market-friendly rate cuts, even though the Fed has continued to telegraph otherwise," said Chris Larkin at E*Trade from Morgan Stanley.

"This week will provide plenty of opportunities for traders to decide whether that cooling trend is intact."

Expectations that rates will come down have weighed on the dollar in recent weeks, although the greenback was steadier Tuesday.

Elsewhere, oil prices climbed around one percent before paring gains as OPEC and its key allies gear up for a delayed meeting due Thursday.

Last week's gathering was postponed after some African countries reportedly baulked at more production cuts proposed by Saudi Arabia.

The Saudis and Russia are thought to be considering announcing a further reduction in output into the new year as they try to prop up prices, which have come down over recent months owing to slowing economies and softening demand.

Key figures around 1430 GMT

New York – Dow: FLAT at 35,330.18 points

London – FTSE 100: DOWN 0.3 percent at 7,437.01 

Paris – CAC 40: DOWN 0.6 percent at 7,223.89

Frankfurt – DAX: DOWN 0.1 percent at 15,946.64

EURO STOXX 50: DOWN 0.5 percent at 4,334.39

Tokyo – Nikkei 225: DOWN 0.1 percent at 33,408.39 (close)

Hong Kong – Hang Seng Index: DOWN 1.0 percent at 17,354.14 (close)

Shanghai – Composite: UP 0.2 percent at 3,038.55 (close)

Euro/dollar: UP at $1.0978 from $1.0958 on Monday

Pound/dollar: UP at $1.2661 from $1.2627

Euro/pound: DOWN at 86.73 pence from 86.75 pence

Dollar/yen: DOWN at 148.19 from 148.64 yen

West Texas Intermediate: UP 1.1 percent at $75.65 per barrel 

Brent North Sea crude: UP 1.0 percent at $80.76 per barrel