LONDON / SYDNEY - Global stocks ticked lower on Tuesday and bond yields dropped as investors looked ahead to a key inflation reading from the US on Thursday.

Meanwhile, euro zone bank stocks fell sharply after Italy approved a 40 percent windfall tax on lenders for 2023 and Moody's cut the credit ratings of several small and mid-sized US lenders.

MSCI's index of global stocks edged 0.23 percent lower after climbing 0.5 percent on Monday. The MSCI Asia index, which excludes Japan, fell 1.11 percent.

European stock indexes opened lower, with the pan-European STOXX 600 down 0.26 percent and Germany's DAX falling 0.33 percent. Britain's FTSE 100 slipped 0.29 percent in early trading.

"It's a bit of a mild, classic, risk-off type of day where you've got equity futures, led by Asia, heading lower and rates heading lower," said Timothy Graf, head of macro strategy for EMEA at State Street. "The trade figures are absolutely terrible."

Futures on the US S&P 500 were down 0.29 percent after the stock index climbed 0.9 percent on Monday. Nasdaq futures were 0.39 percent lower.

US and European bond yields fell, reversing some of the increases seen over the last week.

The US 10-year Treasury yield was down 7 basis points to 4.012 percent, after touching its highest level since November on Friday at 4.206 percent. Yields move inversely to prices.

The dollar picked up against its major trading partners as investors shifted towards safer assets and was last 0.29 percent higher at 102.38.

Banks were the biggest fallers in the euro zone on Tuesday after Italy approved a 40 percent tax on lenders' net interest margin, a measure of income derived from the gap between lending and deposit rates.

The euro zone bank index was down 2.67 percent and on track for its biggest daily fall since the financial turmoil of March.

Italy's BPER banking group dropped 8.27 percent, while Intesa Sanpaolo fell 7.32 percent. Germany's Commerzbank was 3.48 percent lower.

Adding to the gloomy mood in the financial sector was a report by Moody's that cut the credit ratings of 10 banks by one notch. It also placed six banking giants, including Bank of New York Mellon, on review for potential downgrades.

Global investors are keenly awaiting Thursday's US inflation figures for July, which will be a key input into the Federal Reserve's next interest rate decision in September.

US inflation likely accelerated slightly in July to 3.3 percent year-on-year, while the core rate was likely unchanged at 4.8 percent, according to a Reuters poll of economists.

Headline inflation peaked at 9.1 percent in June 2022 but stood at 3 percent in June 2023.

US crude oil fell 0.87 percent to $81.24 a barrel on Tuesday. Brent crude was 0.86 percent lower at $84.60 per barrel.