European stocks may open a tad higher on Wednesday despite diminishing hopes of an economic recovery and worsening U.S.-China relations.
Asian markets are trading mixed after reports that the U.S. and China will meet later this month to discuss compliance with their phase-one trade deal.
High-level talks between U.S. and Chinese officials will be held on Aug. 15 to assess Beijing’s compliance with the bilateral trade agreement signed early this year, the Wall Street Journal reported, citing people briefed on the matter.
Meanwhile, the Trump administration said Health and Human Services Secretary Alex Azar will visit Taiwan in coming days in the highest-level visit by an American official in 41 years. Beijing sees Taiwan as its territory.
In economic releases, the services sector in China continued to expand in July, albeit at a slower pace, the latest survey from Caixin revealed with a PMI score of 54.1, down from the 10-year high of 58.4 in June.
Final Purchasing Managers’ survey results from euro area and the U.K. are due later in the session, headlining a busy day for the European economic news.
Across the Atlantic, traders will keep an eye on reports on private sector employment, the U.S. trade deficit and service sector activity.
Gold rallied to above $$2,000 an ounce as bond yields hit new lows and the dollar weakened against major peers. Oil held steady near $41 a barrel after an explosion at Lebanon’s main port rocked the capital Beirut.
U.S. stocks rose overnight as investors weighed positive comments from U.S. Senate Democratic leader Chuck Schumer and Senate Majority Leader Mitch McConnell on stimulus against a slew of disappointing earnings results.
In economic news, data showed that durable goods orders rose strongly in June for the second straight month after historic declines in the early spring.
The Dow Jones Industrial Average gained 0.6 percent to extend gains for the third straight session, while the tech-heavy Nasdaq Composite and the S&P 500 inched up around 0.4 percent.
European stocks ended mixed on Tuesday as investors monitored rising diplomatic tensions between the U.S. and China.
The pan European Stoxx 600 ended little changed with a negative bias. The German DAX dropped 0.4 percent, while France’s CAC 40 index rose 0.3 percent and the U.K.’s FTSE 100 inched up 0.1 percent.
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