Global Stocks Rise as North Korea Backs Off -- 3rd Update

By Justin Yang and Ese Erheriene Features Dow Jones Newswires

Wall Street futures point to opening gains

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-- Global stocks rise as North Korea steps back on threats

-- Nikkei led gains in Asia

Global equities continued to rebound Tuesday from their late-week slide, as tensions eased between the U.S. and North Korea.

The Stoxx Europe 600 was up 0.1%, while futures signaled the S&P 500 was poised to rise 0.2%.

Following days of escalating rhetoric between Donald Trump and Kim Jong Un, North Korean television reported Mr. Kim had opted against firing on the U.S. territory of Guam.

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The market rebound started Monday in Asia and carried through to Europe and the Americas. The S&P 500 logged its best one-day gain since April, at 1%, on Monday.

Markets will continue to shrug off the likes of North Korea-U. S. tensions, so long as interest rates stay low, the labor market stays strong and the global economy stays healthy, said Dan Miller, director of equities at GW&K Investment Management.

"The stock market should continue on its merry way. Things like North Korea or events in Virginia over the weekend, the market tends to look past those events," he said.

The Federal Reserve will release minutes from its latest meeting on Wednesday, giving investors clues on the central bank's plans for interest rates and balance sheet unwinding.

Federal Reserve Bank of New York President William Dudley said late Monday he expected another rate increase in 2017.

Federal-funds futures, used by investors to bet on the U.S. interest-rate outlook, show a roughly 49% chance the Fed will raise rates by the end of the year, according to CME Group.

In Europe, economic data showed growth in Germany remained solid, despite a mild slowdown in the second quarter.

In U.S. premarket trading, Synchrony Financial jumped 5.9% on the news that Warren Buffett's Berkshire Hathaway Inc. had opened a large investment in the biggest U.S. store credit-card issuer.

The U.S. dollar was 0.7% higher against the yen. The WSJ Dollar Index, which measures the greenback against a basket of currencies, was up 0.4%.

South Korean markets were closed for Independence Day and Japan led the way higher in Asia on Tuesday. The Nikkei added 1.1%, following a 1% drop Monday.

Monday's other regional laggard, Taiwan, also outperformed on Tuesday. The Taiex posted a 0.8% advance amid a rebound in big tech stocks, following Monday's 1% decline. The Australian benchmark was up 0.5%.

Improved risk appetite added to pressure on gold. The metal, considered a safe store of value in uncertain times, was down 0.8%.

The 10-year U.S. Treasury yield rose to 2.254% Tuesday from 2.217% Monday.

Suryatapa Bhattacharya contributed to this article.

Write to Ese Erheriene at ese.erheriene@wsj.com

(END) Dow Jones Newswires

August 15, 2017 07:46 ET (11:46 GMT)