By Anna Isaac
Global stocks drifted higher Tuesday as investors appeared to grow less nervous about the global economic outlook and the prospects for a U.S.-China trade deal.
Futures tied to the Dow Jones Industrial Average index rose 0.4%, while Hong Kong's Hang Seng Index ended the day up almost 1.6%. The Shanghai Composite gauge advanced 0.9%. The key benchmark equity indexes in the U.S. drifted higher to close at record levels once again on Monday following a quiet trading session.
The ICE dollar index, which tracks the greenback against a basket of currencies, dropped sharply immediately after President Trump said he met with Federal Reserve Chairman Jerome Powell at the White House Monday and "protested" about U.S. interest rates being too high. The gauge has since pared back some losses, and was almost flat in early European trading.
Mr. Trump, who has been vocal in his criticism of the central bank, tweeted that he discussed the state of the economy, trade issues, and the impact of "too strong" dollar with the central bank chief. The Fed said Mr.Powell reiterated that he hoped interest-rate cuts earlier this year would bolster the economy. The yield on the U.S. 10-year Treasurys rose to 1.819%, from 1.808% on Monday.
Meanwhile, the pan-continental Stoxx Europe 600 index rose 0.6%, led by airlines and auto makers. EasyJet rose 4.5% in London after the budget airline said bookings for the first half of fiscal 2020 have climbed.
Later in the day, investors will get an opportunity to assess another yardstick for U.S. economic activity and confidence when the Commerce Department releases figures on the number of new homes being built. Economists expect a 3.5% increase in October, compared with the previous month. New York Federal Reserve Bank President John Williams is also set to give a speech at a conference in Washington, D.C.
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