UPDATE: US stock futures advanced; Asian stocks closed mixed; Stocks advanced in Europe 

US stock futures advanced, while Asian stocks closed mixed on Tuesday as markets tried to balance fading optimism over the latest US-China trade agreement with the likelihood of a Brexit deal by Thursday’s European Union summit.

In South Korea, the Kospi index closed fractionally higher at 2,068. Japan’s Nikkei 225 jumped 1.87% to 22,207 and the Topix index added 1.56% to 1,620 after Japanese markets were closed on Monday for a public holiday.

Chinese mainland markets fell. The Shanghai composite slipped 0.56% to 2,991, the Shenzhen composite declined 1.1% to 1,642 and the Shenzhen component was down 1.17% to 9,672. Hong Kong’s Hang Seng index declined 0.11% in late-afternoon trade.

Australia’s ASX 200 wavered between fractional gains and losses to close up 0.14% at 6,652.The heavily weighted financial subindex erased losses to trade up 0.29% while the energy sector fell 0.85% and materials was down 1%.

Ongoing shortage of the meat following an outbreak of African swine fever has pushed up pork prices in China around 69% on-year in September. Overall, the consumer price index was said to have increased 3% on-year last month while the producer price index fell by 1.2%.

On the trade front, China wants another round of talks before signing what US President Donald Trump last week called “a very substantial phase one deal” between the two countries. Chinese state media also struck a cautious tone, warning the US over the weekend to “avoid backpedaling” on the partial trade agreement.

On the other hand, US Treasury Secretary Steven Mnuchin said on Monday he expects the mid-December round of tariffs to take effect if no deal is reached between the countries.

In Europe, stocks advanced on Tuesday on optimism over the possibility of a deal for an agreed Brexit pact.

After losing 0.49% on Monday, the Stoxx Europe 600 rose 0.29% to 391. The German DAX increased 0.26% to 12,519, the French CAC 40 added 0.34% to 5,662 while the UK FTSE 100 fell 0.32% to 7,191.

Lloyds Banking Group and the Royal Bank of Scotland rose as Michel Barnier, the top EU negotiator, said a deal was possible this week.

Meanwhile, in the US, stock futures index were higher on Tuesday morning, as traders look ahead to the kick-off of earnings season.

Around 0610 ET, Dow futures indicated a positive open of more than 120 points. Futures on the S&P and Nasdaq were both also higher.

Source: CITY WIRE

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