European stocks declined on Tuesday afternoon, with the Stoxx 600 index down 0.29% as market uncertainty over future interest rate cuts persisted.

Most sectors were in the red, except for tech stocks, which rose by 0.61%. Danish biotech firm Zealand Pharma saw its shares increase by 4% after announcing plans to seek a big pharma partner for its weight loss drug.

In central bank news, Sweden’s Riksbank cut its interest rate by 25 basis points to 3.50%, with expectations of more cuts this year.

The central bank may align its policy with the U.S. Federal Reserve’s decisions to avoid a large rate spread.

Global markets are now focused on upcoming Fed events, including meeting minutes and a speech by Fed Chair Jerome Powell, which could clarify the outlook for interest rate cuts.

Meanwhile, inflation in the eurozone increased slightly to 2.6% in July, while Germany’s producer price index dropped by 0.8% year-on-year.

In Asia, markets were mostly up, following a strong performance on Wall Street, while U.S. stock futures remained flat after recent gains.