By Anna Isaac
Global stocks rose Tuesday as investors grew hopeful that the U.S. and China may roll back tariffs that have penalized hundreds of billions of dollars in trade.
U.S. stock futures tied to the Dow Jones Industrial Average gained 0.3% a day after the gauge hit record highs. The "phase one" pact would include Chinese purchases of American farm goods, rules to deter currency manipulation and some provisions to protect intellectual property and open up Chinese industries to U.S. firms.
Shares in Uber Technologies fell 5.6% ahead of the opening bell after the ride-hailing company Monday posted another quarterly loss but forecast that it would reach profitability by the end of 2021. The shares may face increased pressure Wednesday, when a lockup period, which prevented early investors and executives from selling shares, will end.
Shares in Adobe climbed 4.4% in after-hours trading after the company beat Wall Street estimates on its earnings late Monday.
In Asia, Japan's Nikkei 225 index climbed by 1.76% as the nation's electronics, machinery and financial companies, which have been under pressure from the global trade tensions, gained on the renewed optimism about a deal. The Shanghai Composite Index rose by 0.5%. The Chinese yuan hit its strongest level in three months, strengthening against the U.S. dollar by 0.6% in offshore trading, with $1 buying 6.9918 yuan.
"It's very clear we're seeing lots of celebration in the market, not just in stocks, but in emerging market assets such as the yuan and coming out of havens like the Japanese yen," said Jane Foley, head of foreign exchange strategy at Rabobank. The cut in interest rates by the Federal Reserve last week has added to investors' optimism, she said. "The rally can extend for a one to three month view."
The sense of diminishing risk in the outlook for global economic growth was reflected in bond markets, a traditional haven for investors. The yield on 10-year U.S. Treasurys climbed to 1.814%, up from 1.787% Monday.
The benchmark for global oil prices, Brent crude, rose 1% to $62.72 a barrel on the renewed hopes about global growth prospects.
Meanwhile, the Stoxx Europe 600 index hovered between small gains and losses. Associated British Foods was among the biggest advancers, climbing 4.4% after its earnings beat consensus estimates.
Fresh data on the pace of growth in the U.S. services sector and the number of new vacancies in the job market will be released later Tuesday. The figures will offer a sense of how robust the domestic economy has been when faced with slowing global growth.
Separately, the Commerce department will issue international trade figures for September. According to a survey of economists conducted by The Wall Street Journal, the deficit is forecast to narrow in the month. The data will help gauge American consumers' appetite for spending on foreign goods and progress in the Trump administration's efforts to reduce the trade deficit.
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