BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may follow their U.S. and Asian peers higher on Tuesday, though the upside could be limited as investors keep an eye on developments surrounding a House impeachment inquiry against President Donald Trump.
White House economic advisor Peter Navarro dismissed reports that the Trump administration was considering delisting Chinese companies from U.S. stock exchanges as 'fake news.'
The U.S. Treasury Department also slated it's not considering blocking Chinese companies from listing on U.S. exchanges 'at this time.'
Asian markets edged higher in thin holiday trade as China began a week-long break to celebrate the 70th birthday of the People's Republic.
The U.S. dollar held near its highest level in almost two weeks versus the yen ahead of manufacturing activity and construction spending data due later in the day and the release of the more closely watched monthly jobs report out Friday.
Investors wait to hear from several Fed policymakers this week, including Fed Chairman Jerome Powell for additional clues on rate outlook.
A central bank survey showed earlier today that Japanese big manufacturers' business confidence fell to a six-year low in the July-September quarter amid growing trade tensions and slowing global growth.
The euro held near a 28-month low versus the dollar as weak inflation data from Germany reinforced expectations that the European Central Bank will keep up ultra-loose policy and stimulus for an extended period.
Flash inflation and final Purchasing Managers' survey results from euro area are due later in the session, headlining a busy day for the European economic news.
Brexit developments will remain on investors' radar in the wake of reports that Boris Johnson's government has finalized the legal text of a proposed Brexit deal.
Overnight, U.S. stocks rose amid optimism surrounding upcoming U.S.-China trade talks.
The Dow Jones Industrial Average gained 0.4 percent, the tech-heavy Nasdaq Composite gained 0.8 percent and the S&P 500 added half a percent.
European stocks ended Monday's session mostly higher as better than expected manufacturing data out of China tempered investor worries about the impact of the U.S.-China trade war.
The pan European Stoxx 600 advanced 0.4 percent. The German DAX rose 0.4 percent and France's CAC 40 index climbed 0.7 per cent while the U.K.'s FTSE 100 slid 0.2 percent.
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