European markets trades higher; FTSE up ~1%

The Stoxx Europe 600 reversed earlier losses as financial- services and chemicals shares advanced.

May 22, 2019 10:05 IST India Infoline News Service

European Central Bank, ECB
US equity futures pared a drop and European stocks turned higher after a mixed session in Asia as investors digested the latest in the Sino-American confrontation over technology. Oil declined and the dollar and Treasuries were steady before the latest Fed minutes.

The Stoxx Europe 600 reversed earlier losses as financial- services and chemicals shares advanced. Contracts on the Nasdaq 100 and Dow Jones Industrial Average pared losses made earlier with Chinese equities after the White House was reported to be considering blacklisting China’s video surveillance firms.

Australian equities held near an 11-year high. Stock and bond markets are fluctuating as investors try to size up how much damage the trade war will bring to global economic growth and supply chains, while the Trump administration considers adding video equipment to its growing blacklist of sales to China. With traders in a wait-and-see mode, the Cboe volatility index has been retreating and on Tuesday touched its lowest level in two weeks.

Next up are the minutes from the most recent Federal Reserve policy meeting. The central bank may have “slightly overdone it” by raising interest rates in December, though it’s premature to talk about a rate cut, St. Louis Fed President James Bullard said in a Bloomberg interview.

Elsewhere, the pound remained volatile as Minister Theresa May faces pressure to quit as prime minister within days after she promised Parliament the chance to call a second referendum on Brexit. UK stocks advanced along with gilts.

Source: Bloomberg

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