•U.S. stock index futures were lower on Tuesday morning, as market participants continued to monitor trade relations between the U.S. and China.
At around 2:30 a.m. ET, Dow futures fell 148 points, indicating a negative open of more than 150 points. Futures on the S&P and Nasdaq were also lower.
Wall Street ended Monday’s session lower but showing a recovery of the bulk of its earlier losses. Traders believed that Beijing and Washington will reach a deal despite the latest escalation of tariffs.
•European stocks traded mixed Tuesday, after it was confirmed Chinese Vice Premier Liu He would attend trade talks in Washington.
The FTSE 100 dropped by around 0.4% at the start of Tuesday’s session, while the CAC traded roughly flat and the DAX rose by 0.15%.
The pan-European STOXX Europe 600 traded around the flatline at the start of the session.
•Asian shares staggered up from five-week lows on Tuesday but remained fragile after U.S. President Donald Trump’s latest threat to raise tariffs on Chinese goods shocked financial markets and fueled worries that trade talks may be derailed.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, erasing earlier losses. It tumbled 2 percent on Monday after Trump unexpectedly jacked up pressure on Beijing in the midst of trade negotiations.
Trump tweeted on Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent by the end of the week and would “soon” target the remaining Chinese imports with tariffs, prompting investors to dump risky assets on Monday.
•Japan’s Nikkei slid on Tuesday as investors returned from a 10-day holiday to worries that U.S.-China trade negotiations may be at risk of breaking down.
Japanese markets were closed April 27 to May 6 for the Golden Week holidays.
Late on Sunday, U.S. President Donald Trump stunned financial markets by announcing he would hike tariffs on Chinese goods on Friday, triggering a global sell-off in stocks and other riskier assets which had been largely pricing in a trade deal.
The Nikkei share average dropped 1.5 percent to 21,923.72, its lowest close since April 12.
•Shares in China climbed on Tuesday after Beijing said it is sending its top official to the United States this week for trade talks, despite the White House threatening fresh tariffs.
The markets managed to claw back some of the losses from Monday’s sell-off following this announcement.
At the close of market hours, the Shanghai Composite index was up 0.7 percent at 2,926.39, and the blue-chip CSI300 index was up 1 percent.
Reference: Reuters, CNBC
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