European stocks, U.S. futures climb 1
Bonds steady ahead of German inflation data
Markets brace for further hawkish Fed, ECB action

HONG KONGLONDON, Aug 30 Reuters Shares crept up slightly and bonds held steady on Tuesday as investors awaited the next round of likely gloomy inflation data while also juggling concerns about Europe39;s energy crisis, a looming recession and more rate hikes.

The panEuropean STOXX index rose nearly 1, led by bank shares as lenders were lifted by increased expectations of European Central Bank rate hikes, while MSCI39;s broadest index of AsiaPacific shares outside Japan rose 0.6.

U.S. shares looked set to follow suit with SP futures up 1 as markets recovered from a round of selling following hawkish remarks by Federal Reserve Chair Jerome Powell at the Jackson Hole conference last week.

Euro zone government bond yields were little changed as traders awaited the latest policy signals and this week39;s inflation data, following a start to the week in which yields soared after a round of policymaker warnings about inflation.

Germany39;s 10year yield traded at 1.496 , unchanged on the day but close to the twomonth high reached on Monday of 1.548.

Besides interest rates, the health of China39;s economy is also at the forefront of investor concerns. China39;s benchmark Shanghai Composite Index shed 0.6 on news that several big cities had ramped up COVID19 restrictions. 

Hong Kong39;s Hang Seng was also dragged 0.37 lower as investors…