Futures Steady as Markets Eye More US-China Trade Talks – Europe Market Wrap

US stock futures hovered as a second day of talks between the Trump administration and China got underway, with investors staying cautious in the absence of meaningful progress in the two nations’ trade dispute.

S&P 500 contracts were little changed after erasing an earlier advance. European equities were also flat. The UK’s FTSE 100, however, was poised to close at an all-time high for the first time since March. While Monday’s negotiations in London between the US and China delivered no breakthrough, American officials had sounded optimistic that the two sides could ease tensions over shipments of technology and rare earth elements. With a key inflation read on tap Wednesday, investors are waiting for fresh drivers after stocks rebounded to near record levels from their April lows.

The FTSE 100 surpassed its previous closing peak as investors took comfort from an improving economic outlook and easing trade tensions, with the UK becoming the first nation to strike a deal with President Donald Trump after his April 2 tariff announcements. Still, sentiment remains fragile as London faces an exodus of companies moving listings to the US and shelving initial public offerings.

In China, stocks were volatile as traders tracked the latest headlines from the trade talks. The Hang Seng China Enterprises Index dipped almost 1% during the session and then recovered most of the losses.

Trump on Monday had told reporters that the US was “doing well with China” and that he was “only getting good reports.”