U.S. Stock Futures Up on U.S, China Trade Talk Optimism

By Dow Jones Newswires StaffU.S. stock futures were up in early European trading following through on moves after the bell Tuesday on optimism around U.S.-China trade talks, while most European markets were down on EU tariff retaliation fears.Asian stock markets mostly gained after China's central bank said it would cut interest rates and inject more liquidity into the financial system. The dollar rose along with oil, while Treasury yields were little changed ahead of the U.S. Federal Reserve's policy decision later.U.S. stock futures pointed to a higher open, with the Dow Jones Industrials up 0.5% and similar gains for S&P 500. Nasdaq futures were last up 0.6%.Asian markets finished mostly higher having given up some of their early morning gains, with attention now on Thursday's meeting between the U.S. Treasury Secretary and U.S. Trade Representative and Beijing's lead economic representatives. The Shanghai Composite Index ended up 0.8% and Hong Kong's Hang Seng gained 0.5%. Japan's Nikkei, which opened higher, closed 0.1% lower. India's Sensex didn't react much to India's military strikes on Pakistan.European stock markets were mostly lower at the open, with the Stoxx Europe 600 down 0.4% and France's CAC 40 down 0.5%. Germany's DAX was steady, while U.K.'s FTSE 100 edged down 0.2%.The dollar rose a touch with Thursday's U.S.-China trade talks raising hopes for a de-escalation in trade tensions and lifting risk appetite. The DXY dollar index against a basket of major currencies was 0.1% to 99.3640 early in Europe.U.S. Treasury and eurozone government bond yields were little changed in early trade as investors stayed sidelined ahead of the Federal Reserve's policy meeting. The 10-year Treasury yield was steady at 4.318%, while the 10-year Bund yield was up 0.5 basis points to 2.541%, according to Tradeweb.Oil prices rose, with trade-talk optimism adding to something of a relief rally on Tuesday. Brent crude was up 1.3% to $62.95 a barrel, while WTI rose 1.5% to $59.97 a barrel.Continuous gold futures were off 0.8% at $3,396.60 a troy ounce after hitting two week highs of $3,448.20/oz earlier in the session.Write to Barcelona Editors at [email protected]