European Shares Seen Higher At Open

European stocks may open slightly higher on Tuesday after reports emerged that U.S. President Donald Trump will speak with his Chinese counterpart Xi Jinping — possibly this week –to address tariff disputes and improve relations.

Also, the U.S. Trade Representative (USTR) extended tariff exclusions on certain seafood products from China through the end of August to avoid a higher 25 percent tariff rate.

In another development, Reuters reported that the Trump administration is asking countries to list their best proposals in a number of key areas by Wednesday, in order to finalize trade deals before July 8.

Asian markets were broadly higher in cautious trade. The dollar strengthened against its major rivals, sending gold prices down from a near four-week high.

Oil prices rose for a second day due to escalating geopolitical tensions and stuttering U.S.-Iran nuclear talks.

Ukraine and Russia failed at talks in Istanbul on Monday to make a breakthrough on an immediate halt to their fighting. They, however, laid the groundwork for a new exchange of prisoners.

On the economic front, U.S. reports on factory orders and job openings may attract some attention later in the day ahead of the monthly U.S. employment data and a widely expected policy rate cut from the European Central Bank.

Oil extended overnight gains on concerns about supply, with production in Canada hit by wildfires and reports suggesting that Iran is set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer.

U.S. stocks shrugged off weak manufacturing data as well as mounting global trade and geopolitical tensions to end modestly higher overnight.

The tech-heavy Nasdaq Composite climbed 0.7 percent, the S&P 500 rose 0.4 percent and the Dow inched up marginally after a White House official told CNBC that Trump and Chinese President Xi Jinping will probably speak soon.

European stocks ended mostly lower on Monday due to rising Sino-U.S. trade tensions and Trump’s steel tariff threat.

The pan European STOXX 600 eased 0.1 percent. The German DAX dipped 0.3 percent and France’s CAC 40 slid 0.2 percent while the U.K.’s FTSE 100 finished marginally higher.

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