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Hang Seng index dips amid China-US trade talks; European stocks rise, Fed decision in focus

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Hang Seng index dips amid China-US trade talks; European stocks rise, Fed decision in focus

Global shares traded on mixed cues on Tuesday as investors focused on high-stakes trade negotiations between the US and China, while awaiting key economic data and central bank decisions later this week.France’s CAC 40 rose 1.1% to 7,887.57, Germany’s DAX advanced 1% to 24,191.38, and the UK’s FTSE 100 was up 0.3% in early trade. US futures also pointed higher, with the S&P 500 gaining 0.2% and the Dow Jones Industrial Average up 0.1%, AP reported.Asian markets, however, displayed caution. Japan’s Nikkei 225 shed 0.8% to close at 40,674.55 amid broad-based losses in auto and financial stocks. Toyota Motor fell 2.3% and Honda declined 2.1%, while Sumitomo Mitsui Financial and Mitsubishi UFJ dropped 1.8% and 1.6% respectively.In China, Hong Kong’s Hang Seng slipped 0.2% to 25,524.45, while the Shanghai Composite Index edged up 0.3% to 3,609.71. South Korea’s Kospi rose 0.7% to 3,230.57, supported by a modest gain in Samsung Electronics, which had surged on Monday after signing a chip supply deal with Tesla.Australia’s S&P/ASX 200 inched up 0.1% to 8,704.60.Investor focus remained on US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng’s ongoing trade dialogue in Stockholm, which comes ahead of an August 1 deadline. Analysts noted that tariffs have now become entrenched in broader geopolitical negotiations.“Tariffs are now well entrenched in the geo-political arena, beyond addressing mere economic imbalances,” Tan Boon Heng of Mizuho Bank said.Back in the US, the S&P 500 closed marginally higher on Monday at 6,389.77, notching an all-time high for the sixth straight session. The Nasdaq composite added 0.3% to end at a record 21,178.58, while the Dow dipped 0.1% to 44,837.56.Investors now await the US Federal Reserve’s policy decision later this week, with most analysts expecting rates to remain unchanged until at least September. Corporate earnings are also in focus, with nearly a third of S&P 500 companies set to report this week.In the energy market, US crude climbed 50 cents to $67.21 a barrel, while Brent crude rose 47 cents to $69.79. On the currency front, the US dollar slipped slightly to 148.53 yen from 148.56 yen, while the euro declined to $1.1567 from $1.1589.





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