➤ Stock markets gain on U.S.-China trade discussions.
➤ Crude oil slips as Trump opposes production cuts.
➤ Sterling recovers as U.K.'s May hints at Brexit 'endgame.'
➤ Italy set to defend 2019 budget proposals.

Wall Street looks set to recover as Asian and European stock markets largely shrugged off the tech sector's woes and tracked trade negotiations across the globe.
Overnight, the S&P 500 index closed down 1.97%, while the tech-heavy Nasdaq Composite index lost 2.78%, as Apple Inc. plunged 5.04% amid concerns that demand for its flagship iPhone may have peaked. The company's Asia-listed suppliers took a hit today, with Japan Display Inc.'s shares plunging 9.52% and Hon Hai Precision Industry Co. Ltd. down 2.36%.
But trade hopes helped Chinese stocks close higher, as U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He reportedly restarted talks for a potential U.S.-China trade deal before a bilateral meeting scheduled at the G20 summit in Argentina later this month. Liu is reportedly expected to visit the U.S. soon for talks in an aim to defuse trade tensions before the G20 summit, though a specific schedule has not yet been set.
Elsewhere, China and Australia are trying to finalize a 16-nation trade deal, called the Regional Comprehensive Economic Partnership, in 2019, though Singapore has pushed for a "substantial conclusion" of the RCEP by the end of 2018.
The Shanghai SE Composite index pared losses to close 0.93% higher following news of the U.S.-China trade talks, while Hong Kong's Hang Seng was up 0.62%, with Tencent Holdings Ltd. gaining 1.40%. Meanwhile, Japan's Nikkei 225 tumbled 2.06%, with Toyota Motor Corp. down 2.44% and other automakers in the red amid concerns that the U.S. could impose tariffs on imported cars on national security grounds.
In Europe, the FTSE 100 rose 0.17%, while France's CAC 40 gained 0.38% and Germany's DAX index advanced 0.77%. Vodafone Group PLC shares surged more than 8% in London after the company maintained dividend payments despite reporting a loss in its fiscal first half.
Brent crude oil ended a short-lived rally early yesterday and slid 2.08% to $68.66 per barrel on the ICE Futures Exchange after U.S. President Donald Trump urged Saudi Arabia and OPEC to not cut oil production, tweeting that "oil prices should be much lower based on supply." West Texas Intermediate crude oil also dived 2.20% to $58.61 per barrel on the New York Mercantile Exchange, and shares in European oil supermajors Royal Dutch Shell PLC and Total SA dipped more than 1% each, while BP PLC shed more than 2%.
"We would turn more optimistic on oil prices if and when Brent breaks above a previous high to create a higher high," said Fawad Razaqzada, technical analyst at Forex.com.
In currencies, sterling recovered 0.58% against the dollar after British Prime Minister Theresa May said Brexit negotiations with the European Union were "in the endgame." David Lidington, the U.K. minister for the Cabinet Office and May's de facto deputy, said a divorce deal between Britain and the EU was "almost within touching distance."
Meanwhile, annual wage growth in the U.K. hit an expected multiyear high in the three months to September, though the unemployment rate picked up unexpectedly.
The euro rose 0.28% versus the dollar, while the Japanese yen dipped 0.14%.
Italian bonds dipped as the country's populist government is due to submit its response to the European Commission's objections on its 2019 budget proposals today. "We don't expect Italy to make any substantive changes, but only to justify how they will limit any shortfalls," TD Securities said.
Ten-year yields on Italian government bonds rose 3 basis points to 3.47%, while yields on 10-year German Bunds were unchanged at 0.40%.
Treasurys rose as 10-year yields dropped 2 basis points to 3.165%. Gold lost 0.40% to $1,198.50 per ounce.
More from S&P Global Market Intelligence:
Hong Kong needs more innovation, investor education to cash in on biotech boom
China's Q3 offshore green bond issuance falls to 1-year low
US yields see substantial uptick in 2018 as investors view more hawkish Fed
Systemically important banks increase cross-border exposures
Wind turbine-makers, suppliers stay calm on steel through US tariff workarounds
Utilities hear customer calls for renewables but want regulatory support
The day ahead:
8:55 a.m. ET — U.S. redbook
10 a.m. ET — U.S. Fed's Neel Kashkari speaks
10 a.m. ET — U.S. Fed's Lael Brainard speaks
2 p.m. ET — U.S. Treasury Budget (Econoday consensus: $111.8 billion deficit)
2:20 p.m. ET — U.S. Fed's Patrick Harker speaks
5 p.m. ET — U.S. Fed's Mary Daly speaks
6:50 p.m. ET — Japan GDP (Econoday consensus: -0.2% quarterly)
