Stock markets mostly gained and the dollar eased Tuesday ahead of key US inflation data, and after Chinese economic growth data met expectations.
London鈥檚 benchmark FTSE 100 index briefly traded above 9,000 points for the first time. Indices generally were benefiting from optimism that governments will hammer out deals to avoid the worst of US president Donald Trump鈥檚 tariff threats.
Oil prices dropped despite Trump telling major crude producer Russia to end its war in Ukraine within 50 days or face massive new economic sanctions.
鈥楳arkets are particularly attuned to the evolving landscape of trade negotiations,鈥� noted Samer Hasn, senior analyst at聽traders XS.com.
鈥楳oreover, the market is awaiting key releases today, including the (US) Consumer Price Index.鈥�
Traders are also keeping a watch over the start of the earnings season.
US investment banking giant JPMorgan Chase on Tuesday reported second-quarter profits that topped analyst estimates.
Chief executive Jamie Dimon described the US economy as 鈥榬esilient鈥� while facing 鈥榮ignificant risks鈥�, including over tariffs uncertainty.
Ahead of Wall Street reopening, US futures rallied following news that tech titan Nvidia will resume sales of its H20 artificial intelligence chips to China, after Washington pledged to聽remove licensing curbs that halted exports.
The Nasdaq hit another record high on Monday.
Trump meanwhile said he would impose antidumping duties on most imports of fresh tomatoes from Mexico, with the US Commerce Department accusing its neighbour of engaging in聽unfair trade.
That came after the president said he would hit Mexico and European Union with 30 per cent levies, following a slew of announced measures against key partners last week if deals are not struck by August 1.
Analysts said investors viewed the warnings as negotiating ploys rather than a genuine move, citing previous threats that were later rowed back.
Bitcoin retreated, having hit a record high above $1,23,200 Monday thanks to optimism over possible regulatory changes for crypto assets in the United States.