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· Stocks are moving higher on the prospect of a trade deal, but some strategists say the market may sell off if the deal is not substantive enough or retains existing tariffs.

Bank of America strategists said stocks could gain 5 to 10 percent if the U.S. agrees to a deal that eliminates all tariffs and China gives full access to its markets and agrees to a plan on intellectual property rights with enforcement.

Strategists expect a deal of some sort, but some are skeptical it will be as broad as the U.S. is seeking.

· European stocks start Tuesday's session in the red, following on from the volatile session seen in Asia-Pacific markets.

The pan-European Stoxx 600 was down by 0.2 percent with every sector in the red.

Overall, investors kept abreast of the ongoing talks between the U.S. and China. On Monday, President Donald Trump said that he could sign a deal in the near future, in regards to ending the trade war with China, Reuters reported.

· Asian shares lost steam on Tuesday after scaling a five-month high as investors waited to see if Washington and Beijing can clinch a trade deal, while the pound advanced on hopes UK Prime Minister Theresa May will delay a Brexit deadline.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5 percent from its highest since mid-September as U.S. and Chinese negotiators work to hammer out a deal that would end a protracted tit-for-tat tariff battle.

· Japan’s Nikkei share average closed slightly weaker on Tuesday, having touched its highest levels since mid-December earlier in the day before a decline in Asian stocks and selling pressure ahead of the fiscal year-end in March forced a retreat.

The Nikkei ended the day down 0.37 percent at 21,449.39 after touching a high of 21,610.88, a level unseen since mid-December.

“Receding trade tensions and hopes for dovish Fed policy was of help to Japanese stocks but these are mostly eternal factors, not indigenous ones. Selling generated by window-dressing towards the end of the fiscal year is capping the market,” said Takashi Hiroki, chief strategist at Monex Securitie

· Chinese stocks fell on Tuesday in heavy volume as some investors took profits on heavyweight financial shares, betting the market’s recent spectacular surge is unsustainable.

But optimists believe the correction provides a good entry point, hailing Monday’s nearly 6 percent jump in the blue-chip CSI300 Index as the start of a new wave of buying.

“Short-term adjustment is natural,” said Wen Xunneng, a Shanghai-based hedge fund manager. “We’re at the starting point of a bull market.”

The CSI300 index moved roughly 1 percent on either side before settling down 1.2 percent lower at 3,684.69 points, while the Shanghai Composite Index fell 0.7 percent to 2,941.52. The CSI300’s rise on Monday was its biggest one-day gain in three years.

Reference: Reuters, CNBC