Investors Itching for Progress in US-China Talks

With precious little to report out of Sino-U.S. trade talks in London, investors are ready to pounce on almost any sign a thaw in the frigid relationship between the two superpowers is just around the corner.

U.S. and European equity futures, as are stocks in Asia, while the dollar was also a tad firmer after President Donald Trump said he was getting "good reports" from Monday's meeting with China.

Talks resume at 0900 GMT on Tuesday (5 a.m. EST) at Lancaster House, and markets want a deal to flesh out details around U.S. tech export controls and those around Chinese rare earths, and of course, where the final average rate of tariffs will settle.

Recent data indicates the trade war is taking a toll on both major economies, which could soon rattle other major economies.

Global investors are also in the market for fresh trade deals, with about a month left before Trump's tariff pause expires.

Meanwhile, the global healthcare sector was caught in the crossfire as vaccine skeptic U.S. Health Secretary Robert F. Kennedy Jr. fired all members of a U.S. Centers for Disease Control and Prevention panel of vaccine experts.

The move could be a headache for companies such as GSK , Sanofi, AstraZeneca, Moderna and BioNTech as they face longer waits for vaccine approvals.

Advertising firms weren't spared from scrutiny, either, as The Wall Street Journal reported that the U.S. Federal Trade Commission has sought information from some of the industry's leading firms.

Omnicom, WPP, Dentsu, Interpublic Group and Publicis Groupe were among those asked by the watchdog on whether advertising and advocacy groups violated antitrust laws by coordinating boycotts of certain sites.

Two key developments that could influence markets on Tuesday are the auction of U.S. three-year Treasury notes and NFIB Small Business Optimism Index.