Stocks climbed in Europe and Asia while U.S. equity futures added to earlier gains as investors trained their focus anew on the America-China trade arena.
Advances in miners and carmakers pulled the Stoxx Europe 600 Index higher, with shares in Germany the best performers even as investor confidence in its economy fell to the lowest since 2010. Futures on the S&P 500, Dow and Nasdaq gauges all pointed to gains at the open.
China equities outperformed after news that local governments will have more room to spend funds on infrastructure helped offset President Trump’s threat to raise tariffs again if President Xi Jinping doesn’t meet with him at the Group of 20 summit at the end of the month.
Iron ore futures surged on the China spending plan, and the onshore yuan recovered after closing at its weakest level of the year. Emerging market stocks gained, while oil edged back near $54 a barrel in New York.
Sentiment has turned cautiously optimistic with investors looking to the G-20 summit in Japan as the next way-station in the trade dispute between the world’s two largest economies. Keeping the tension elevated, Trump told reporters on Monday that he could impose tariffs of 25%, or “much higher than 25%” on $300 billion in Chinese goods.
Futures on the S&P 500 Index rose 0.5% as of 10:29 a.m. London time, heading for their sixth straight advance. The Stoxx Europe 600 Index increased 0.8%, poised for the highest close in more than three weeks.