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Wall St rallied on Tuesday as investors focus on the outcome of US and China trade talks which entered a second day in London. The S&P500 gained 0.55% to post a third straight winning day while the Dow Jones added 0.25% and the Nasdaq ended the day up 0.63%. Investors are hoping a stable deal can be done, with some officials saying the negotiations are ‘going well and they expect the talks to continue all day again’.

In Europe overnight, markets closed mixed as investors brace for US – China trade updates. The STOXX 600 rose 0.08%, Germany’s DAX fell 0.58%, the French CAC rose 0.17% and, in the UK, the FTSE 100 ended the day up 0.24% just shy of its previous record set.
 Across the APAC region on Tuesday, markets in the region closed mixed as investors await details of the US – China trade talks. Japan’s Nikkei rose 0.32%, China’s CSI index lost 0.51%, Hong Kong’s Hang Seng closed flat and South Korea’s Kospi Index ended the day up 0.56%.

The local market started the holiday-shortened trading week with a fresh record close buoyed by strength among energy stocks amid the rising price of oil.

Progress in talks between China and the US on Monday night through a 6-hour meeting and NAB business confidence data for May out on Tuesday morning beating expectations were the key drivers of the local index posting a 0.84% gain on Tuesday. Investor sentiment is very news and noise driven right now so any positive news and outlook drives markets higher.

Yesterday, we had the release of NAB Business confidence for May released and Westpac Consumer Confidence for June released with business confidence rising 2 index points for May, well exceeding the fall to -3 index points economists were expecting, but consumer confidence rose just 0.5% which fell short of the 2.5% rise markets had expected as consumer fears remain elevated on the global trade uncertainty front.

MonashIVF (ASX:MVF) tanked over 25% yesterday after news surfaced that the company has encountered a second IVF embryo implantation incident with the wrong embryo being inserted into a patient, marking the second event of its kind to hit the headlines in a month.

Gold miners retreated on Tuesday as investor appetite for growth stocks regained momentum amid the sliding price of gold on the back of trade negotiation progress between the world’s largest economies.

What to watch today:

•  The Aussie dollar has strengthened against the greenback to buy 65.19 US cents, 94.47 Japanese Yen, 48.11 British Pence and 1 New Zealand dollar and 8 cents.
• On the commodities front this morning, oil has pulled back from yesterday’s spike to trade 0.91% lower at US$64.68/barrel, gold is down 0.1% at US$3322/ounce and iron ore is down 0.6% at US$95.62/tonne.
• Ahead of Wednesday’s trading session in Australia the SPI futures are anticipating the ASX will open the day up 0.28%.

 Trading ideas:

• Bell Potter has increased the 12-month price target on Catapult Group (ASX:CAT) and maintain a hold rating on the leading sports technology company following the company’s announcement of its latest acquisition of US-based Perch for an initial consideration of US$18m. The analyst sees the acquisition will provide a large cross-sell opportunity to its existing 3600 pro teams.
• And Trading Central has identified a bullish signal on Yancoal (ASX:YAL) following the formation of a pattern over a period of 60-days which is roughly the same amount of time the share price may rise from the close of $5.51 to the range of $6.25 to $6.45 according to standard principles of technical analysis.