European stocks are likely to open higher on Tuesday after the release of upbeat trade data from China, showing rising exports and imports in December.
China’s exports rose an annual 7.6 percent in the month, marking the first gain in the country’s exports since July 2019 and the fastest growth rate since March 2019. At the same time, imports in the month grew 16.3 percent from a year earlier.
Asian markets hit a seven-month high, China’s yuan jumped and safe-haven assets such as gold and the yen slipped, after the U.S. Treasury Department dropped its designation of China as a currency manipulator.
The move comes as a Chinese delegation arrived in Washington for the scheduled signing of the Phase 1 trade agreement on Wednesday.
U.S. Trade Representative Robert Lighthizer told Fox Business that the Chinese translation of the deal’s text was almost done.
Oil traded flat as optimism about trade and global growth offset receding Middle East tensions.
Saudi Arabia’s Energy Minister Abdulaziz bin Salman said in a Bloomberg television interview on Monday that OPEC and its allies remain focused on using production cuts to reduce oil inventories to normal levels, undeterred by the flare up in geopolitical tensions.
Meanwhile, U.S. banks will kick off the earnings season, with Citigroup, JPMorgan Chase and Wells Fargo due to report their results before the start of trading later today.
U.S. stocks rose overnight amid reassuring signs that trade negotiations with China remain on track.
The Dow Jones Industrial Average inched up 0.3 percent, while the Nasdaq Composite index climbed 1 percent and the S&P 500 added 0.7 percent to reach fresh record closing highs.
European markets gave up early gains to end lower on Monday as investors awaited quarterly earnings reports from major U.S. banks.
The pan European Stoxx 600 eased 0.2 percent. The German DAX slid 0.2 percent and France’s CAC 40 index finished marginally lower while the U.K.’s FTSE 100 rose by 0.4 percent.
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