U.S. stocks recovered from a wobbly start to end the session higher Tuesday, with the Dow climbing by triple digits, as energy and telecommunications rallied. However, trade worries were simmering below the surface as investors continued to watch the situation between the U.S. and China. The Dow Jones Industrial Average gained 113.99 points, or 0.4%, to end at 25,971.06 with the S&P 500 adding 10.76 points, or 0.4%, to finish at 2,887.89. The Nasdaq Composite Index advanced 48.31 points, or 0.6%, to close at 7,972.47.
European markets however ended slightly lower after a report that China plans to seek permission from the World Trade Organization to impose sanctions on the U.S. increased concerns about the global trade picture. The Stoxx Europe 600 fell 0.1% to end at 375.31 with Germany’s DAX 30 ending 0.1% lower at 11,970.27 after paring earlier losses. The U.K.’s FTSE 100 also slipped 0.1% to end at 7,273.54.
Alibaba’s Russian venture
China’s largest e-commerce firm, Alibaba Group Holding Ltd has joined forces with a state fund and two technology firms in Russia, hoping that access to their client base of more than 100 million people will boost its development. The three Russian entities will have a combined 52 percent stake in the e-commerce platform after contributing cash, shares and other assets.
Alibaba will own 48 percent of AliExpress Russia as a result of a deal signed with Russian Direct Investment Fund, mobile operator Megafon and internet group Mail.ru during Russia’s Eastern Economic Forum on Tuesday. E-commerce has grown rapidly in Russia in recent years, spurred by improved internet access, with turnover exceeding $14 billion last year, one third of which were cross-border deals, according to Russia’s Association of Internet Trade Companies.
Brexit Summit scheduled for November
The U.K. and the European Union are preparing for a special summit to sign the Brexit deal in November and the meeting could be announced within days, according to people familiar with the matter. European Commission President Jean-Claude Juncker said Wednesday he welcomed UK Prime Minister Theresa May’s Brexit proposal and would work “day and night” toward reaching a deal with the U.K., though he ruled out her plan to stay in the bloc’s single market for goods while going it alone in services.
May will present her case to her EU counterparts at an informal meeting in Salzburg next Wednesday, before the other 27 leaders discuss how to respond among themselves. The plan for a special Brexit deal summit is likely to be unveiled during the course of the Salzburg gathering, two people said, with one suggesting the announcement could come even sooner.
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