Asian stock markets and U.S. stock index futures rose slightly on Tuesday, with some investors expecting Britain to still have a chance to avoid a disorderly exit from Europe in key negotiations this week.
The MSCI Mingsheng Asia-Pacific (excluding Japan) index rose 0.1%. Korean Composite Stock Index. KS11 rose 0.21%, Nikkei Index. N225 rose 1.74%.
However, the lack of progress in trade negotiations between the United States and China has limited market growth.
The news of the first phase of the trade agreement between the United States and China last week once cheered the market, but after that the details of the agreement were scarce, dispelling optimism, oil prices continued to fall, China's stock market weakened, and the safe-haven yen maintained its upward trend against the dollar.
Now the focus has shifted to Europe, where British and EU officials will meet, and the EU Summit on Thursday and Friday will decide whether Britain will move towards an agreement-free exit.
"Because of parliamentary intervention, I think the chances of leaving Europe without agreement are about 10-20%," said Shane Oliver, chief analyst and investment strategy for Sydney's security capital investment.
"If an agreement is reached, the pound will rise and risky assets will rise, but the market reaction may be limited to one day."
U.S. stock index futures rose 0.23% in Asian trading on Tuesday after the S& P 500 closed down 0.14%.
But traders cautioned that sentiment remained fragile because the outcome of the British withdrawal negotiations was far from certain and that the Sino-US trade war remained a risk to global growth.
British Prime Minister Johnson hopes to reach a withdrawal agreement at the EU Summit on Thursday and Friday, which will lead to an orderly withdrawal of Britain from the EU on October 31.
The main problem remains the border between Ireland, a member of the European Union, and Northern Ireland, the United Kingdom. Some EU officials are cautiously optimistic about the prospects for an agreement.
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