By Nathan Allen 

European stocks climbed on Tuesday after a downbeat session in Asia, as investors awaited a resolution to the U.S.-China trade negotiations following the recent escalation in tensions.

The Stoxx Europe 600 was up 0.6% in opening trading. Germany's DAX rose 5% and the U.K. FTSE 100 gained around 0.6%.

In Asia the Hong Kong Hang Seng Index dropped 1.7%, Japan's Nikkei fell 0.7% and Korea's Kospi gained 0.1%

U.S. futures pointed to opening gains of 0.5% for both the S&P 500 and the Dow Jones Industrial Average, after the two indexes on Monday each shed 2.4%, their steepest one-day losses since Jan. 3.

Germany's Bayer AG was among Europe's biggest losers, trading 3% lower after a California jury awarded $2.06 billion to a couple who blamed the company's Roundup weedkiller for causing their cancer.

Volatility in global markets has surged in recent days, as the dispute between the U.S. and China intensified after a period of prolonged calm, prompting renewed concerns about global economic growth.

On Monday Beijing hit back against a hike in U.S. tariffs with proposals to raise its own tariffs on around $60 billion of U.S. imports. President Trump responded with plans to impose a 25% levy on a further $300 billion of Chinese goods, including mobile phones and laptops, as early as this summer.

Still, Mr. Trump didn't rule out the prospect of an accord being reached within the next few weeks, and said he was prepared to meet Chinese President Xi Jinping at the coming G-20 summit, stoking optimism for a successful outcome among some investors.

"Whilst Trump's comments offered some support to market sentiment overnight, we suspect it will take more than that to repair the damage done," said London Capital Group's Head of Research Jasper Lawler in a note. "Investors will want to see concrete evidence of progress after Trump's 180-degree turn last week spooked the markets."

The yield on 10-year U.S. Treasurys on Tuesday edged up to 2.415%, from 2.405% on Monday. Yields move inversely to prices. German 10-year government bonds were still in negative territory at -0.60%.

The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was flat.

In commodities, global benchmark Brent crude oil was up 0.2% on Tuesday morning at $70.35 a barrel. Gold was down 0.2% at $1,298.80 an ounce.

Write to Nathan Allen at nathan.allen@dowjones.com

 

(END) Dow Jones Newswires

May 14, 2019 04:03 ET (08:03 GMT)

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