US stocks finished higher overnight, reversing earlier losses suffered amid the comments by White House trade adviser Peter Navarro suggesting the U.S. trade deal with China was in trouble. Later, President Donald Trump tweeted that the agreement with China was fully intact, which brought relief to investors. As a result, the S&P 500 rose 0.6% after initially sliding 0.6%. The Dow Jones Industrial Average picked up 0.6%, and the Nasdaq Composite climbed 1.1%, extending its winning streak to a seventh day.
In Asia, shares rebounded on Tuesday after Donald Trump assured the markets that the U.S.-China trade pact was fully intact. However, in the longer run, U.S.-China tensions could escalate in the run-up to the U.S. elections. MSCI’s broadest index of Asia Pacific shares outside of Japan rose 0.6%. Hong Kong’s Hang Seng rose 1%, South Korea’s Kospi index added 0.3% while Japan’s Nikkei jumped 0.8%.
European stocks opened higher today despite a surge of coronavirus cases in several countries and some concerns over the state of the U.S.-China trade deal. Financial services, industrials, and tech stocks each climbing more than 1%. On the data front, France June flash services PMI arrived at 50.3 versus 45.2 expected. In Germany, June flash manufacturing PMI came in at 44.6 versus 42.5 expected. Better-than-expected headline numbers gave some lift to the euro. Following the data, EURUSD jumped to the 1.13 barrier which remains the key hurdle for bulls. If the buying pressure persists, this level may turn into support by the end of the day.
Elsewhere, Brent crude climbed to fresh early-March highs in recent trading. The futures exceeded the $43 handle and extended gains to the $43.30 area, buoyed by positive risk sentiment in the global financial markets. Also, the prices are supported by a weaker dollar. If a break above $43 is confirmed, Brent crude may target the $45 handle in the days to come. On the downside, the immediate support now arrives at $42.