European stocks climbed with US futures following a mixed session in Asia on Tuesday as the trade-war driven turbulence that has dominated markets this month showed few signs of abating. The dollar strengthened while Treasuries were steady.
Contracts on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 indexes all traded in the green after the US granted limited relief for consumers and carriers using Huawei Technologies, a day after the White House’s moves against the Chinese telecom giant battered stocks.
European shares rose, with tech firms leading the advance. Chinese equities had the strongest gains in the Asian session, while their Japanese peers ended lower. A gain for Samsung Electronics Co. helped bolster Korean shares, on bets it may benefit from Huawei’s need to shift away from American suppliers.
Many risk assets have been whipsawed in May as the world’s largest economies ratchet up both rhetoric and action on trade, with the latest phase focused on Huawei and its suppliers and customers. For all the turmoil a gauge of global stocks remains within 5% of an all-time high, while the S&P 500 is about 3% from a record. Against that backdrop, investors will be closely watching a slew of US data this week as well as Federal Reserve policy-meeting minutes due on Wednesday.
Elsewhere, the pound slipped below $1.27 as Theresa May faced a showdown with her cabinet over trying to get her Brexit deal approved, while Australia’s dollar dropped after the central bank governor flagged that an interest-rate cut will be considered next month.