European markets were mixed in opening trade on Tuesday, following a rate cut by Australia's central bank.

Europe's FTSEUROFIRST 300 opened flat in early trading

Britain's FTSE 100 and Germany's DAX opened 0.2% lower in early deals

France's CAC 40 opened flat.

Spain's IBEX gained 0.2% while Italy's FTSE MIB added 0.1% in opening trade

Australia is struggling to move away from mining-led growth, prompting the Reserve Bank of Australia to cut its cash rate by a quarter percentage point to an all-time low of 2.5%. The central bank also hinted at a further cut in rates, if needed, to boost growth.

In a statement accompanying the decision, RBA Governor Glenn Stevens cited the local currency as a factor, saying the Australian dollar "has depreciated by around 15% since early April, although it remains at a high level" and that a further easing "would help to foster a rebalancing of growth in the economy."

"The inflation outlook could provide some scope to ease policy further, should that be required to support demand," he added.

Market participants will be tracking GDP data coming in from Italy. The market consensus is that economic contraction is expected to ease in the second quarter. Analysts forecast Italy's economy to shrink 0.4% on the quarter and 2.2% on the year. June's industrial output is expected to be down 3.3% from a year ago.

Overall business activity in the Eurozone expanded in July for the first time in 18 months, indicating a stabilisation in the single-currency region's economy.

In the UK, the Treasury is due to auction £4.5bn worth of July 2018 Treasuries during the day. The government will release monthly and annual manufacturing and industrial production data. Mortgage lender Halifax will put out its monthly House Price Index.

Elsewhere, Germany will put out monthly factory orders data

In company news, London-headquartered bank Standard Chartered, Legal & General, Germany's Deutsche Post, France's Natixis and Italy's Unicredit will all put out earnings updates during the day.

French corporate and investment bank Natixis is reportedly planning to axe 500 to 700 employees, with a voluntary removal scheme, following the impact from tough new regulations and the eurozone sovereign debt crisis.

Credit Agricole reported a more than twelve fold gain in quarterly profit on Tuesday, beating expectations. Net income in the three months ended 30 June rose to €696m (£601 , $923m) from €56m a year ago.

In Asia and the US

In Asia, the Japanese Nikkei finished 1% higher on Tuesday. South Korea's Kospi closed 0.50% lower while Australia's S&P/ASX index closed 0.11% lower.

Earlier in Asia, markets were mixed as they struggled for direction amid a lack of economic cues.

Banking stocks were down in Sydney following the rate cut by the RBA. In May, two influential analysts said that Australia needs to slash interest rates in order to plug an economic black hole that was created from slowing mining activity.

On Wall Street, the Dow and the S&P 500 ended lower on Monday. The Nasdaq finished at a 13-year high.

The Dow finished 46.23 points lower at 15,612.13, pulled down by Travelers and United Technologies. The S&P 500 closed 2.53 points lower at 1,707.14.

The Nasdaq ended 3.36 points higher at 3,692.95