European stocks may open flat to slightly higher on Tuesday, tracking strong overnight gains in U.S. peers and amid a lack of directional cues from other Asian markets.
The dollar held on to recent gains against its peers as optimism about the state of the U.S. economy and the Federal Reserve’s dovish turn helped revive demand for riskier assets.
The British pound barely moved after the British government said that most goods shipped to Britain from the European Union could be waved through without checks in the event of a “no-deal” Brexit.
Asian stocks extended gains from the previous session, though trading volumes remain thin amid Lunar New Year holidays in China, Taiwan, South Korea, Singapore and Indonesia.
Oil prices extended overnight gains to hold near a two-month high as OPEC-led supply cuts and U.S. sanctions against Venezuela’s petroleum industry offset concerns about a weaker outlook for economic growth.
Overnight, U.S. stocks ended higher for the fourth straight session after President Donald Trump told CBS that trade talks with Beijing are “doing very well” and added that he saw a “good chance” of reaching a deal with North Korea on denuclearization.
The Dow Jones Industrial Average climbed 1.7 percent, the tech-heavy Nasdaq Composite rallied 1.2 percent and the S&P 500 rose 0.7 percent to reach their best closing levels in two months.
European markets ended mixed on Monday as investors awaited further developments on Brexit and U.S.-China trade issues.
The pan European Stoxx 600 inched up 0.1 percent. The German DAX finished marginally lower and France’s CAC 40 index dropped 0.4 percent while the U.K.’s FTSE 100 rose 0.2 percent.
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