In This Article:
* Europe, S&P500 futures gain after Mnuchin confirms trade talks
* Euro zone data weigh on euro, deepen anxiety about economy
* Sterling waits for Supreme Court ruling on parliament suspension
* World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Marc Jones
LONDON, Sept 24 (Reuters) - European shares rose on Tuesday, following their worst day in over a month, after Washington said the United States and China would resume trade talks. Britain's pound was laying low before the next act in the Brexit drama.
There was more gloomy data from Germany to contend with, but U.S. Treasury Secretary Steven Mnuchin's confirmation that he and Trade Representative Robert Lighthizer would meet Chinese Vice Premier Liu He in two weeks' time was keeping up spirits.
The pan-European STOXX 600 index rose 0.3%, with the eurozone banking index up 0.6% after it had slumped 2.8% in the previous session. Germany's bond yields were also a touch higher after Monday's dour PMI data had triggered their biggest fall since June.
"A perceived lull in U.S.-China trade tensions has eased market fears about an economic downturn," a group of BlackRock's investment strategists wrote in a note.
Currency market moves were mostly small-scale. The dollar rose the euro wobbled around $1.0990 after falling below a key support of about $1.10.
Sterling also slipped, to $1.2423, as traders waited a ruling from Britain's Supreme Court on Prime Minister Boris Johnson's suspension of parliament this month. The decision is due at 0930 GMT.
"In the case of the law interpretation agreeing with the government, markets may perceive PM Johnson’s negotiation position with the EU as having been strengthened as the probability of a no-deal Brexit may look higher, Morgan Stanley's Hans Redeker said.
"Sterling may initially weaken, but markets could then focus on the possibility that the EU could become more flexible on the Irish backstop. In this scenario, GBP would turn into a 'buy the dip' story."
GOOD TO TALK
MSCI's broadest regional Asia share index inched up 0.1%, led by 0.6% gains in mainland Chinese shares after the vice head of China's state planner said Beijing will step up efforts to stabilise growth.
Japan's Nikkei ended up 0.2% after a market holiday on Monday. Wall Street looked on track for modest gains, with S&P futures up 0.25%.
Japan's yen traded at 107.62 yen per dollar, after reaching two-week highs of 107.32 the previous day.