European Shares Seen Up On Trade Truce Optimism
(RTTNews) - European stocks look set to open broadly higher on Tuesday amid signs that the U.S.-China trade hostilities might be easing for now.
After China's top trade negotiator and Vice Premier Liu He called for "calm" negotiations to resolve the trade dispute, U.S. President Donald Trump said he believed Beijing was sincere in its desire to reach an agreement.
Asian markets advanced while safe-haven assets retreated as Trump hailed positive gestures from Beijing as signs of an imminent trade deal.
China's yuan weakened for the ninth straight session to hit fresh 11-1/2-year lows. Gold inched up in the wake of mixed signals on the trade front while the dollar held firm.
Oil prices rose slightly after falling for a fourth straight session the previous day amid reports that preparations were underway for a meeting between Iranian President Hassan Rouhani and President Trump in the coming weeks to find a solution to a nuclear standoff.
In economic releases, detailed results from Destatis revealed earlier today that Germany's economy contracted slightly, as initially estimated, in the second quarter.
GDP shrank 0.1 percent sequentially in the second quarter, reversing the first quarter's 0.4 percent expansion. This was the first fall in three quarters and matched the initial estimate.
Overnight, U.S. stocks rallied after Trump told reporters at the G-7 summit that top Chinese officials had called asking for the resumption of trade talks and prospects for a deal were better now than at any time since talks began last year.
The Dow Jones Industrial Average and the S&P 500 climbed around 1.1 percent while the tech-heavy Nasdaq Composite jumped 1.3 percent.
European markets ended Monday's session on a flat note as the U.S.-China trade rift clouded the G-7 summit in France.
The pan European Stoxx 600 edged down marginally. The German DAX rose 0.4 percent and France's CAC 40 index gained half a percent while the U.K. markets were closed for a holiday.
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