European stocks mostly flat

European stocks traded mostly flat to negative on Tuesday, with the exception of gains in London, as optimism over a tentative trade deal between the U.S. and Mexico failed to drive appetite for those assets any further.

The Stoxx Europe 600 Index rose 0.2%, after closing up 0.5% on Monday. U.S. stock futures pointed to a mostly flat start, after the S&P 500 and Nasdaq Composite indexes closed at records for a second straight day on Monday, driven by enthusiasm over that trade deal.

The strongest regional gains were seen in the U.K., where the FTSE 100 climbed 0.7%, returning to action after a three-day weekend. Metal and mining plays were among the biggest gainers, including commodities giant Glencore up 2.6%, and Evraz up 3.8%. Among other heavyweights, lender HSBC Holdings added 1%. Elsewhere, the mood was tepid. Germany’s DAX flat at 12,548.80 and the CAC 40 Index was also flat at 5,481.59.

Italy’s FTSEMIB Italy was under pressure, down 0.7% to 20,645.95, led by a 1% drop for heavyweight electricity and gas group Enel and banking group Intesa Sanpaolo off 1.2%. The euro was modestly up against the dollar, trading at $1.1692, compared with $1.1678 late Monday.

Trade issues will remain a topic for investors. President Donald Trump on Monday said his administration reached a deal with Mexico on issues that have held up renegotiation of the North American Free Trade Agreement for over a year. He said it remains to be seen if Canada can join the proposed trade deal between the two countries.

Japan’s Nikkei breached 23,000 on Tuesday thanks to the United-States-Mexico trade deal, then shed most of the gains on profit-taking but still ended the day at its highest close since mid-June. The Nikkei share average finished the day up 0.1 percent.

The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact.