BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening a tad higher on Tuesday, with U.S.-China tensions and the latest batch of quarterly earnings results likely to be in focus.
U.S. President Donald Trump has stated that the U.S and China are on track for a significant trade agreement, while warning that if negotiations fail, China could face tariffs as high as 155 percent starting November 1.
Trump also said he will visit China early next year after receiving an invitation from Beijing.
'I've been invited to go to China, and I'll be doing that sometime fairly early next year. We have it sort of set,' Trump told reporters at the White House.
U.S. stock futures were marginally higher, a day after the S&P 500 logged its biggest two-day gain since June on earnings optimism and hopes for an end to the U.S. government shutdown.
3M, Coca-Cola and General Motors are among some of the big-name companies due to report their quarterly results before the U.S. opening bell later today.
The 20-day U.S. federal government shutdown is likely to end this week, White House economic adviser Kevin Hassett said, adding if the shutdown does not end, the White House would consider additional cost-cutting action.
Democrats and Republicans are still at odds over federal healthcare subsidies and it is feared that a prolonged standoff could dent near-term GDP growth.
Elsewhere, China's Q3 GDP growth slowed to 4.8 percent, driven by exports amid weak consumption and persistent deflation, official data showed ahead of a meeting between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng this week.
Proposals for China's 15th Five-Year Plan (2026-30) are expected to be announced after the fourth plenary session of the 20th Central Committee of the Communist Paty of China from Oct 20 to 23.
The European economic calendar remains light, with data on U.K. public sector finances awaited later in the day.
The U.S. Bureau of Labor Statistics will release the September consumer price index on Friday, which will give Federal Reserve officials a critical piece of information on inflation ahead of their Oct. 30 meeting.
Asian markets were mostly higher amid indications that tensions between Washington and Beijing were easing.
U.S. Treasury yields were unchanged in Asian trade and the dollar edged higher while gold and oil prices were moving lower.
U.S. stocks rallied overnight as investors braced for key earnings and the release of key inflation data delayed by the government shutdown.
Investors cheered media reports suggesting that the Trump administration is quietly watering down some of the tariffs that underpin the president's signature economic policy.
After President Trump listed rare earths, fentanyl and soybeans as the U.S.'s top issues with China, Treasury Secretary Scott Bessent said relations with Beijing have 'deescalated' and that trade talks with the country will resume this week in Malaysia.
The tech-heavy Nasdaq Composite surged 1.4 percent as Apple's share price hit a record high on iPhone 17 optimism. The S&P 500 and the Dow both climbed around 1.1 percent.
European stocks closed higher on Monday as investors reacted to mixed economic data and the latest geopolitical developments, with Trump's team pushing for a Ukraine peace deal.
The pan European Stoxx 600 gained 1 percent. The German DAX jumped 1.8 percent, France's CAC 40 edged up by 0.4 percent and the U.K.'s FTSE 100 added half a percent.
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