Seoul Gazette - Stocks diverge as traders await Fed rates meeting

Oil prices staged a comeback after tanking on news of an output hike by key OPEC+ producers that came despite growing concerns over a slowdown in the global economy, which could hit demand.

In Europe, Frankfurt's stock market shed around one percent after German conservative leader Friedrich Merz failed to win a majority in the first parliament vote for chancellor, in an unexpected setback.

Paris dropped while London was flat in early afternoon deals.

"It's a big week for central bank interest rate decisions," noted AJ Bell investment director Russ Mould.

The US Federal Reserve is expected to hold interest rates steady on Wednesday, even as President Donald Trump pushes for more cuts.

While data last week showed that the US economy contracted in the first quarter, strong jobs and services sector figures suggest there is still some resilience.

"The key focus will be on forward-looking commentary and whether the Fed is getting worried about Trump's tariffs," Mould added.

Elsewhere, the Bank of England is Thursday expected to cut its key rate by a quarter point to 4.25 percent amid concerns of weak growth in Britain.

In Asia Tuesday, stock markets benefited from some renewed optimism that governments are making progress in agreements to temper Trump's levies, which have roiled global markets in recent months.

US Treasury Secretary Scott Bessent told CNBC that the Trump administration had been approached by 17 countries and offered "very good" trade proposals.

He also said there could be "substantial progress in the coming weeks" with China, which has been hit with tariffs of 145 percent.

Hong Kong and Shanghai stock markets closed higher Tuesday as investors returned from a long weekend.

Traders brushed off losses on Wall Street, with the S&P 500 snapping a nine-day winning streak and film studios hit by Trump's warning of new tariffs on all films made outside the United States.

Oil prices rose more than two percent, clawing back Monday's losses that came after Saudi Arabia, Russia and six other members of the OPEC+ cartel agreed to boost output by 411,000 barrels a day in June.

The move came a month after a similar announcement that caused prices to fall.

In company news, US food delivery service DoorDash agreed to buy Deliveroo in a £2.9-billion ($3.9-billion) deal that values the UK group at less than half of its initial public offering price.

Shares in Deliveroo rose around two percent on London's second-tier FTSE 250 index.

Danish wind turbine maker Vestas rose five percent in Copenhagen after it stuck to its annual earnings forecasts despite geopolitical uncertainty and US tariffs.

- Key figures at around 1100 GMT -

London - FTSE 100: FLAT at 8,593.68 points

Paris - CAC 40: DOWN 0.4 percent at 7,695.11

Frankfurt - DAX: DOWN 0.9 percent at 23,139.69

Hong Kong - Hang Seng Index: UP 0.7 percent at 22,662.71 (close)

Shanghai - Composite: UP 1.1 percent at 3,316.11 (close)

Tokyo - Nikkei 225: Closed for holiday

New York - Dow: UP 0.2 percent at 41,218.83 (close)

Euro/dollar: UP at $1.1326 from $1.1319 on Monday

Pound/dollar: UP at $1.3350 from $1.3296

Dollar/yen: DOWN at 143.11 yen from 143.72

Euro/pound: DOWN at 84.84 pence from 85.10

Brent North Sea Crude: UP 2.1 percent at $61.48 per barrel

West Texas Intermediate: UP 2.1 percent at $58.34 per barrel

D.Choi--SG