European shares to open higher on cautious Brexit, U.S.-China trade optimism

European shares were seen mostly edging higher Tuesday morning on the back of hopeful sounds over U.S.-China trade talks, while U.K. lawmakers are set to debate Prime Minister Boris Johnson’s EU Withdrawal Agreement Bill.

The FTSE 100 was seen around the flatline at 7,164, the DAX was expected to gain around 36 points to open up at 12,784, and France’s CAC 40 was seen up around 11 points at 5,659, according to IG data.

European stocks broke a three-day losing streak Monday amid cautious optimism that Johnson’s Brexit deal will gain approval from U.K. parliament this week. House of Commons Speaker John Bercow refused to allow a vote on the deal Monday after opposition lawmakers forced a delay in ratifying the deal until the necessary legislation had been passed.

Members of Parliament (MPs) on Tuesday begin a three-day debate in which opponents of Johnson’s exit plan will attempt to pass amendments on customs, a possible second confirmatory referendum, and the prevention of a no-deal exit.

Asia Pacific markets climbed on Tuesday following overnight gains on Wall Street, likely prompted by comments from U.S. President Donald Trump’s chief economic adviser Larry Kudlow, who told Fox Business Monday that there is a possibility for planned tariff hikes on Chinese goods in December to be halted if trade talks advance.

Chinese Vice Foreign Minister Le Yucheng said on Tuesday that progress was being made in talks between the world’s two largest economies, adding that resolutions to their trade dispute could be found if mutual respect was maintained.

Earnings season remains in focus, with Swiss banking giant UBS on Tuesday reporting 16% drop year-on-year in its third-quarter profit as the bank warned of a “challenging environment.”

Novartis also reported before the bell, the Swiss pharma powerhouse boosting its 2019 targets after beating third-quarter profit and sales expectations.

Source: CNBC