➤ US Chamber of Commerce urges US, China to withdraw additional tariffs.
➤ ECB's Knot says restarting quantitative easing not yet warranted.
➤ Dollar stable ahead of Fed's favored inflation gauge's latest reading.
U.S. stock futures rose, tracking gains from European equities, as the U.S. and China remained in touch about their trade dispute.
U.S. President Donald Trump hinted at scheduled talks between the two sides Aug. 29 after China Commerce Ministry spokesman Gao Feng said while the country could retaliate further to U.S. tariffs, the two nations should engage in talks over whether the U.S. tariffs could be reversed.
The U.S. Chamber of Commerce CEO Thomas Donohue urged the U.S. and China to withdraw the latest additional tariffs and resume trade negotiations in good faith to reduce uncertainty and help restore business confidence.
The S&P 500 index and the Nasdaq 100 are set to extend gains Aug. 30, having closed 1.3% and 1.5% higher, respectively, Aug. 29. In Europe, the FTSE 100 gained 0.7%, Germany's DAX climbed 1.1% and France's CAC 40 added 0.9% around 6:30 a.m. ET.
"The more measured tone in deciding to focus on next month's meeting to discuss removing the extra duties has seen some optimism start to creep back in," wrote Michael Hewson, chief market analyst from CMC Markets UK.
Asian bourses were mostly in the green, as Hong Kong's Hang Seng edged up 0.1% and Japan's Nikkei 225 advanced 1.2%. The Shanghai SE Composite was down 0.2%.
In the bond market, the yield on 10-year Treasurys rose 3 basis points to 1.526% and that on German bunds with the same maturity was little changed.
Among currencies, the dollar index, which measures the U.S. currency against a basket of developed-market peers, was stable, ahead of the core PCE price index, which is considered the Federal Reserve's preferred inflation gauge.
The euro depreciated 0.1% versus the dollar as preliminary data showed eurozone core inflation was unchanged in August from the previous month and the unemployment rate was steady in July. Meanwhile, German retail sales fell more than expected in July.
European Central Bank rate-setter Klaas Knot said Aug. 29 that the current weakness in the eurozone economy may not yet warrant a restart of quantitative easing and that he favors only an interest rate cut for now.
Knot's comments had a very brief positive impact on the euro, as "they proved insufficient to dent markets' ultra-dovish expectation" for a major economic stimulus package in September, according to a note from ING Research.
Sterling was little changed as Scottish judge Raymond Doherty did not block U.K. Prime Minister Boris Johnson's decision to suspend Parliament, but scheduled a full hearing on Sept. 3. Separately, Johnson said the U.K. and EU must "step up the tempo" of Brexit discussions.
The Japanese yen rose 0.1% as retail sales in Japan fell at a faster-than-expected annual pace in July, while a rebound in industrial production beat market estimates.
In commodities, Brent crude fell 0.1% to $61 per barrel on the ICE Futures Exchange. Gold also lost 0.1% to $1,534.70 per ounce.
More from S&P Global Market Intelligence:
August trade war escalation to hurt consumer, auto companies most
Argentine politics and economy test the IMF, again
Libor alternative designed for small US banks rolls ahead with futures launch
British mortgage lenders well-placed to cope even in Brexit 'doomsday' scenario
The day ahead:
8:30 a.m. ET – U.S. personal income and outlays (Econoday consensus: 1.7% yearly for core PCE price index)
8:30 a.m. ET – Canada Q2 GDP (Econoday consensus: 3.0% annualized)
8:30 a.m. ET – Canada industrial product price index
9:45 a.m. ET – U.S. Chicago PMI (Econoday consensus: 47.5)
10 a.m. ET – U.S. consumer sentiment (Econoday consensus: 92.3)
1 p.m. ET – U.S. Baker-Hughes rig count
3 p.m. ET – U.S. farm prices
