UTX United Technologies Corporation

By Anna Isaac 

-- S&P 500, Dow futures rise 0.3%

-- U.S. 10-year Treasury yields tick higher

-- Asian, European indexes broadly gain

U.S. futures followed global stocks higher after the U.S. moved to rekindle stalled trade talks with China.

President Trump met with major technology companies at the White House on Monday to discuss restrictions on Chinese telecom giant Huawei, a move seen as a step toward softening the U.S. stance on the blacklisted firm.

Wall Street was set for another crop of results from major corporations, which led the field in premarket trading. Coca-Cola Co.'s shares rose by 1.9% premarket after it reported earnings and revenue that beat expectations. Shares in United Technologies Corp. also climbed 2.5% before the opening bell, after a strong second quarter saw it increase it sales expectations for 2019 as a whole.

Results from insurance firm Travelers Cos. and Visa Inc. were also due Tuesday.

Separately, Congress struck a deal late Monday with the White House over spending, which would suspend the federal debt ceiling until the end of July 2021. The move effectively took the matter off the table until after the next presidential election.

In the U.K., as widely expected, Boris Johnson, the former foreign secretary and leading voice of the campaign to leave the EU, won the Conservative competition for party leader and is now set to become the country's new prime minister.

The leadership change prompted a muted response from markets, with the British pound little changed. Derek Halpenny of MUFG Bank Ltd. said that unless there were signs that support was ebbing away from Mr. Johnson, in the form of further cabinet resignations or parliamentary party defections, there would "not be much in terms of volatility in equities, currencies or bonds."

In Europe, shares of trade-sensitive auto-related companies led gains. Faurecia SA, an auto parts maker, had the biggest gain in the region at 10.4%, after posting better-than-expected results in its Chinese and South American operations, according to UBS. Daimler AG rose 4%, after it said that China's state-owned Beijing Automotive Group Co. had taken a roughly 5% stake in the company.

Technology firm Logitech International climbed 7.1% after it said it was on track to meet its 2020 sales and revenue targets.

The positive mood in markets was gaining support both from central banks and cooling trade tensions, said Thushka Maharaj, global strategist at J.P. Morgan Asset Management. Analysts expect a cut to interest rates from the Federal Reserve next week, and evidence of more stimulus from the European Central Bank on Thursday.

Still, a "sustained rally" across assets would require an improvement in underlying economic indicators, most particularly "manufacturing data across Europe and Asia," Ms. Maharaj said.

Shares in Spanish lender Banco Santander SA and Swiss bank UBS Group AG both rose 3% and 2.4%, respectively, following their earnings reports. UBS's profit came in well ahead of expectations, and while Santander reported a tumble in net profit of 18% after costly restructuring efforts, this was largely in line with analysts' forecasts.

Asian markets also were up, with Shanghai up 0.5%, Hong Kong's Hang Seng up 0.3% and Japan's Nikkei up 1%.

(END) Dow Jones Newswires

July 23, 2019 08:03 ET (12:03 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.