FYI: U.S. stock index futures were slightly lower Tuesday morning.
At around 04:10 a.m. ET, Dow futures dipped 35 points, indicating a negative open of more than 34 points. Futures on the S&P and Nasdaq were both marginally lower.
Market focus is largely attuned to global trade developments, with high-level negotiators from the U.S. and China poised to hold a fresh round of talks in Washington, D.C., on Thursday.
Asian equities rally
• LSE shares down after bid withdrawal
• Government bond yields rise
Global stocks wavered Tuesday, with European shares slipping after a broadly higher session in Asia, amid hopes that U.S.-China trade talks this week could lead to progress in breaking the impasse between the countries.
The rises in Asia came despite the U.S. decision to add 28 Chinese entities to an export blacklist, citing their role in Beijing’s repression of Muslim minorities in northwest China. China’s top trade envoy, Liu He, will lead a delegation to resume trade talks with U.S. officials in Washington on Thursday, China’s Ministry of Commerce said in a statement.
The Stoxx Europe 600 was down 0.4% in opening trade, after Japan’s Nikkei climbed 1% and Korea’s Kospi gained 1.2%. Stocks in Shanghai and Hong Kong rose 0.3% as Chinese markets returned from a holiday.
Shares in London Stock Exchange Group PLC fell 6% after Hong Kong Exchanges & Clearing Ltd. pulled a $36.6 billion bid for its London rival, a deal that would have united two major trading hubs.
On the trade front, China’s recent large purchases from the U.S. soybean market signaled a potential thaw in relations. But China has also sought to narrow the scope of the trade negotiations, putting aside national-security issues.
he yield on 10-year Treasurys rose to 1.573%, from 1.553% Monday afternoon. The yield on the 10-year German bund rose to minus 0.559%, up from minus 0.572% Monday afternoon, after data showed that German industrial output grew slightly in August.
The rise in German industrial output came as a surprise after a dismal reading on Monday of manufacturing orders for the same month. Industrial output increased by 0.3% in August over July in adjusted terms, the statistical office said. Despite the better-than-expected output, the industry remains in a downturn, the Ministry of Economics said.
Optimism in the U.S.-China negotiations was also visible in commodities prices. Global oil benchmark Brent crude gained 0.7% to $58.75 a barrel, and gold fell 0.5%.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/trade-hopes-lift-asian-shares-but-european-stocks-slip-11570522191Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-07/asia-stocks-look-mixed-as-china-trade-talks-near-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-apple-stock-market-rally-focus-on-china-trade-microsoft-ambarella/CNBC::
https://www.cnbc.com/2019/10/08/stock-market-us-china-trade-talks-in-focus-on-wall-street.htmlU.K.
https://uk.reuters.com/article/uk-britain-stocks/lse-leads-ftse-100-lower-as-hong-kong-bourse-nixes-bid-idUKKBN1WN0NGEurope:
https://www.reuters.com/article/europe-stocks/update-1-european-stocks-reverse-course-as-trade-anxiety-takes-over-lse-tumbles-idUSL3N26T1Y9Asia:
https://www.marketwatch.com/story/asian-markets-gain-ahead-of-us-china-trade-talks-2019-10-07/printBonds:
https://www.cnbc.com/2019/10/08/us-bonds-treasury-yields-higher-as-investors-monitor-us-china-trade-talks.htmlCurrencies:
https://www.cnbc.com/2019/10/08/oil-markets-industrial-commodities-and-oil-producers-in-focus.htmlOil:
https://www.cnbc.com/2019/10/08/oil-markets-industrial-commodities-and-oil-producers-in-focus.htmlGold:
https://www.cnbc.com/2019/10/08/gold-markets-us-china-trade-talks-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx 
