HONG KONG - Stock markets pushed higher on Tuesday as investors cheered another record day on Wall Street and looked past the political and economic uncertainty buffeting Europe.
At around 8:05 a.m. Eastern, France’s CAC 40 added 0.4 percent to 4,593, and Britain’s FTSE 100 edged 0.2 percent higher to 6,760. Germany’s DAX rose up 0.2 percent to 10,707. U.S. stocks were poised for a nearly flat open, with Dow futures steady and S&P 500 futures rising 0.1 percent.
European markets recovered after initial losses. Leadership changes in the French government appeared to unsettle investors, who are already worried about renewed political uncertainty on the continent following Italy’s referendum.
French Prime Minister Manuel Valls announced he would step down to prepare for running for president after President Francois Hollande decided not run for a second term. Market fears had largely receded after the Italian vote, which forced Premier Matteo Renzi’s resignation.
“The markets appear to have come to the realization that the concerns paid to the Italian referendum may be too much or too early,” said Jingyi Pan of IG Markets in Singapore. “Relief rally has become the favorite description for the overnight trend seen in both European and U.S. stock markets as traders tuned back to riskier assets.”
In Asian trading on Tuesday, Japan’s benchmark Nikkei 225 index climbed 0.5 percent to close at 18,361. South Korea’s Kospi jumped 1.4 percent to 1,990 after the finance ministry said it would frontload nearly 70 percent of government spending for 2017.
Hong Kong’s Hang Seng added 0.8 percent to 22,675, while the Shanghai Composite index dipped 0.2 percent to 3,200. Australia’s S&P/ASX 200 climbed 0.5 percent to 5,429.
The rally in oil prices petered out after four days of gains fueled by the OPEC deal to trim production. Benchmark U.S. crude futures lost 64 cents to $51.15 in early electronic trading on the New York Mercantile Exchange. The contract rose 11 cents on Tuesday. Brent crude, used to price international oil, shed 36 cents to $54.58 a barrel in London.
The dollar rose to 113.88 yen from 113.70 yen in Tuesday trading. The euro fell to $1.0735 from $1.0756.