European Shares Seen Up On Bets US May Lift China Tariffs

stockmarkets jan23 05jul22 lt

European stocks are seen opening higher on Tuesday after reports suggested that U.S. President Joe Biden is in the process of making up his mind on easing U.S. tariffs on China, in part to ease record-high inflation.

Chinese Vice Premier Liu He had a "constructive" virtual dialogue with U.S. Treasury Secretary Janet Yellen today, with both sides agreeing to better coordinate macro policies, according to China's commerce ministry.

There was also some cheer on the data front, with China's services activity growing at the fastest rate in June in almost a year as the easing of pandemic-related restrictions boosted demand, survey results from S&P Global showed.

The Caixin services purchasing managers' index (PMI) rose to 54.5 from 41.4 in May.

Asian markets rose along with U.S. equity futures, while gold dipped slightly as the dollar gained support from a strong rebound in the U.S. 10-year Treasury yields ahead of the Fed meeting minutes and the U.S. nonfarm payrolls report due this week.

Oil extended gains after rising more than 2 percent on Monday amid supply concerns, driven by lower OPEC output and a strike in Norway.

U.S. markets were closed overnight for the Independence Day holiday.

In Europe, stocks ended broadly higher on Monday boosted by gains in oil & gas companies. The pan European Stoxx 600 rose half a percent.

France's CAC 40 index gained 0.5 percent and the U.K.'s FTSE 100 climbed 0.9 percent while the German DAX slipped 0.3 percent after the country reported its first monthly trade deficit in over 30 years in May.

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