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The S&P 500 and Dow edged higher on Tuesday after White House economic adviser Larry Kudlow said a meeting between President Donald Trump and his Chinese counterpart on Saturday was an opportunity to “turn the page” on a trade war.

Based on the latest available data, the Dow Jones Industrial Average rose 108.49 points, or 0.44 per cent, to 24,748.73, the S&P 500 gained 8.67 points, or 0.32 per cent, to 2,682.12 and the Nasdaq Composite added 0.85 points, or 0.01 per cent, to 7,082.70.

All three major U.S. indexes turned positive after spending much of the session in negative territory, after Kudlow’s comments days ahead of the high-stakes dinner between the two leaders after the G20 summit in Buenos Aires.

But Kudlow also said the White House has been disappointed so far in China’s response to trade issues with the United States. On Monday, Trump threatened to move ahead with additional tariffs on Chinese goods, due to take effect on Jan. 1.

“People want to believe that something good is going to come from the G20” meeting, said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York. “(But) the longer it takes, the more concern the market feels that this is never going to happen, or it’s just more rhetoric and people start to lose faith.”

His remarks follow Trump’s comments on Monday, when he said he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 per cent from the current 10 per cent and repeated his threat to impose tariffs on all remaining imports from China.

“Until we get more clarification on the trade front, we are going to see some choppy waters,” said Ryan Nauman, market strategist at Informa Financial Intelligence, in Zephyr Cove, Nevada.

Canada’s main stock index fell on Tuesday, as Trump’s latest threat to raise tariff on Chinese imports hit mining shares.

The Toronto Stock Exchange’s S&P/TSX Composite index was down 68.56 points, or 0.46 per cent, at 14,944.09.

Seven of the index’s 11 major sectors were lower, led by a 1.9-per-cent slide in the materials sector.

Teck Resources Ltd. sat down 3.2 per cent, while Kinross Gold Corp fell 2.6 per cent. West Fraser Timber Co Ltd. and Canfor Corp. dropped 4.2 per cent and 5.3 per cent, respectively.

Marijuana producers led a 1.6-per-cent drop in health care stocks with Aphria Inc. falling 4.3 per cent and Aurora Cannabus Inc. losing 2.9 per cent. Rival Canopy Growth Corp. rose 1 per cent.

Lagging shares were Ensign Energy Services Inc., down 9.3 per cent, Interfor Corp., down 6.4 per cent, and Seven Generations Energy Ltd., lower by 5.9 per cent.

Leading the index were Maxar Technologies Ltd., up 5.7 per cent, Dorel Industries Inc., up 3.1 per cent, and Precision Drilling Corp., higher by 2.8 per cent.

European markets opened subdued, but dipped as trading progressed. The pan-European STOXX 600 index lost 0.26 per cent and MSCI’s gauge of stocks across the globe gained 1.17 per cent.

Trade-related worries lifted the greenback. The dollar index , which tracks the U.S. dollar versus the euro, yen, sterling and three other currencies, was up 0.31 per cent at 97.373.

“Donald Trump’s renewed tariff threats against China have magnetized investors to the U.S. dollar,” Lukman Otunuga, a research analyst at broker FXTM, said in a note.

The Federal Reserve should be even more attentive to new economic data as its gradual interest-rate hikes edge it ever closer to a neutral stance, Federal Reserve Vice Chair Richard Clarida said on Tuesday.

Investors will now turn their attention to a speech on Wednesday by Fed Chairman Jerome Powell and minutes from the central bank’s Nov. 7-8 meeting, to be released on Thursday, for further clues of how many more times the Fed is likely to raise interest rates.

Sterling slumped against the dollar and the euro as doubts grew about whether British Prime Minister Theresa May can get a Brexit agreement through a divided Parliament.

Treasury yields fell on Tuesday afternoon after $40 billion of new five-year notes were sold to strong demand and on resurgent worries about U.S.-China trade tensions. The benchmark 10-year government note yield was down 1.5 basis points from Monday’s close, last at 3.06 per cent.

Oil prices dipped on Tuesday, weighed down by uncertainty over the U.S.-China trade war and signs of increased global crude production, but losses were limited by expectations that crude exporters would agree to cut output at an upcoming OPEC meeting.

Brent crude futures fell 27 cents to settle at $60.21 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 7 cents to settle at $51.56 a barrel.

Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.

Both crude benchmarks are down more than 30 per cent since early October, depressed by an emerging supply overhang and widespread financial market weakness.

Market participants looked ahead to a meeting of leaders of the Group of 20 nations (G20), the world’s biggest economies, on Nov. 30 and Dec. 1, with the trade war between Washington and Beijing top of the agenda.

Reuters

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