European Shares Seen Higher In Cautious Trade

(RTTNews) - European stocks are seen opening a tad higher on Tuesday as U.S.-China trade negotiations continue in Stockholm for a second day.

Top economic officials from both nations held over five hours of negotiations on Monday to resolve longstanding economic disputes and lay the groundwork ahead of a leaders' summit in the autumn.

"I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest!" U.S. President Donald Trump said on Truth Social.

Days before the August 1 deadline, Trump also said that countries refusing to negotiate separate trade deals could face tariffs ranging from 15 percent to 20 percent, well above the 10 percent rate set in April.

U.S. stock futures climbed as investors braced for key economic data, central bank meetings and tech earnings.

Key inflation and labor market data will be in the spotlight this week, with the July reading of the personal consumption expenditures (PCE) index due to be released on Thursday, followed by the crucial jobs report on Friday.

The Federal Reserve is seen holding rates steady between 4.25 percent and 4.50 percent on Wednesday, with investors looking for hints on whether a September cut is likely.

The Bank of Japan is set to hold off raising interest rates on Thursday but may offer a less gloomy view on the outlook.

On the earnings front, Meta Platforms and Microsoft will unveil their earnings results on Wednesday, followed by Amazon and Apple on Thursday.

Asian markets were subdued, with benchmark indexes in Japan and Hong Kong falling nearly 1 percent after several European leaders voiced concerns over the EU-U.S. trade deal, calling it 'lopsided' and 'unsustainable'.

The dollar index held firm amid trade optimism following the U.S.-EU trade deal. Gold held steady after declining notably on Monday.

Oil prices were marginally lower after rising 2 percent on Monday as U.S. President Trump pushed for Russia to reach a swift truce with Ukraine or face potential economic penalties.

Overnight, U.S. stocks ended mixed as traders' enthusiasm for the U.S.-EU deal was muted.

The tech-heavy Nasdaq Composite rose 0.3 percent and the S&P 500 edged up marginally to reach new record closing highs while the narrower Dow slid 0.1 percent.

European stocks ended mostly lower on Monday as the EU-U.S. trade deal met with gloomy reactions from many European leaders, with Germany and France slamming the draft trade agreement as unequal and damaging.

The pan European STOXX 600 eased 0.2 percent. The German DAX lost 1 percent while the U.K.'s FTSE 100 and France's CAC 40 both fell by 0.4 percent.