Global trade conflict between the US and China still in focus

European stocks were higher Tuesday morning, as investors’ awaited U.S.-China trade talks, although critical comments from President Donald Trump capped gains and tested market optimism. Market participants are hopeful they might be able to find a way to resolve an ongoing global trade conflict. However, the U.S. president reportedly said he did not “anticipate much” from the discussions.

The pan-European Stoxx 600 was up around 0.3% during midmorning deals, with most sectors and major bourses in positive territory. Europe’s oil and gas stocks were among the top performers, up around 0.4% amid earnings news. Mining giant BHP Billiton reported a 33% jump in annual underlying profit on Tuesday. However, the world’s largest miner also warned investors of a delay in future savings as well as some cost pressures over the coming months. Shares of the Londonlisted stock were more than 1% lower on the news.

In Asia, Chinese markets led gains on Tuesday in a mostly positive trading session across Asia, extending their upward climb from the previous day after the banking regulator urged institutions to boost lending in the country. The Shanghai composite rose 35.36 points, or 1.31%, to 2,733.82 and the Shenzhen composite added 20.20 points, or 1.39%, to 1,471.27.

In Hong Kong, the Hang Seng index was up 0.37%, Japan’s Nikkei 225 closed near flat at 22,219.73 while the Topix index fell 6.73 points, or 0.4% to 1,685.42. South Korea’s Kospi rose 22.18 points, or 0.99%, to 2,270.06 with major tech names rising. Shares of Samsung Electronics closed up 2.17%, chip-maker SK Hynix added 4.95% and LG Electronics rose 1.66%. But major carmaker Hyundai Motor fell 1.57% and the state-run Korea Electric Power Corporation declined 1.6%.

In Australia, the benchmark ASX 200 declined 60.6 points, or 0.96%, to close at 6,284.4, with most sectors falling. The energy sector was down 1.79%, materials was lower by 1.26% and the heavily weighted financials sub index fell 1.33%. Major banking and mining stocks were down.

Meanwhile, in currency markets, the dollar came under pressure overnight after Trump reiterated his displeasure at the Federal Reserve’s monetary policy. He said the central bank should do more to help his administration boost the U.S. economy. The president’s latest criticism of the Fed comes three days before Friday’s much anticipated speech by Fed Chair Jerome Powell at the central bank’s annual Jackson Hole Symposium.