European markets were up Tuesday morning following days of losses, although trading was thin ahead of the Jackson Hole meeting of central bankers later this week.
London's FTSE 100 was up 0.62%, or 45 points, to 7,364. France's Cac 40 was up 29 points, or 0.58%, to 5,117.3 and Germany's DAX was up 0.67%, or 80 points, to 12,146.
In London, Subprime lender Provident Financial (FPLPY) plunged more than 55% in the first hour of trading Tuesday, to change hands at 724 pence, after it issued its second profit warning in three months, saying the pre exceptional loss of the division was now "likely to be in the range of between £80 million and £120 million." This prompted CEO Peter Crook to step down with immediate effect.
Asian markets were mostly up Tuesday. The Nikkei was flat, down 0.05% to 19,383, with the yen marginally lower and Japanese government bond yields little changed. Elsewhere, the Kospi and the won were higher despite escalation in tensions from the U.S.-South Korean joint military drills
In Hong Kong, the Hang Seng gained 1.10% to 27,454 and on mainland China the CSI 300 was up 0.28% to 3,751. The Hang Seng was boosted by the real estate and financial sector.
U.S. futures were pointing to a positive open, with Dow Jones Industrial average futures up 0.25% and S&P 500 futures gaining 0.26%.
President Donald Trump on Monday promised to "change dramatically" the U.S. approach to the long-running war in Afghanistan but was scant on details on what the changes will be.
Speaking at the Fort Myer Army base in Arlington, Virginia, the president acknowledged his past calls for withdrawing entirely from Afghanistan but said that after much consideration he had decided to stay in and "fight to win."
He targeted Afghanistan as well as Pakistan for what he said has been their roles in also harboring terrorists and called on allies and partners to protect shared interests in the Middle East and around the globe.
Bridgewater's Ray Dalio has warned that politics will probably play a greater role in affecting markets than we have experienced any times in our lifetimes.
"It seems to me that we are now economically and socially divided and burdened in ways that are broadly analogous to 1937," the chairman and CIO of the world's largest hedge fund wrote in a LinkedIn post. "While I see no important economic risks on the horizon, I am concerned about growing internal and external conflict leading to impaired government efficiency (e.g. inabilities to pass legislation and set policies) and other conflicts."
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