Geopolitical news is helping to drive stocks Wednesday morning as Britain’s political crisis takes another step as trade talk eases trader concerns.
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Dow Jones futures were rising by 0.7 percent. The S&P 500 added 0.7 percent and the Nasdaq Composite was up 1 percent.
British Prime Minister Theresa May faces what may be her biggest challenge yet on Wednesday as Conservative lawmakers plan to hold a no-confidence vote.
The result could see her removed as party and government leader if she loses.
London’s FTSE gained 0.8 percent after May said she will fight the leadership challenge. Germany’s DAX added 0.5 percent and France’s CAC added 0.9 percent.
Chinese and Hong Kong stocks edged higher on Wednesday after Huawei’s chief financial officer was granted bail by a Canadian court, and as President Trump sounded upbeat about a trade deal with China.
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The Shanghai Composite ended the day up 0.3 percent.
Hong Kong’s Hang Seng index closed higher by 1.6 percent.
Japan’s Nikkei soared to finish the session higher by 2.2 percent.
The Dow Jones Industrial Average closed lower on Tuesday after a volatile session that saw it rise more than 300 points before plunging more than 500 points over investor fears of a government shutdown.
The blue-chip index fell 53 points. The S&P 500 also fell, while the Nasdaq Composite rose slightly.
Shares initially climbed in morning trading on word that Beijing will cut American auto tariffs and that trade talks between the U.S. and China had restarted.
A stunning, on-camera clash Tuesday in the White House between the president, Nancy Pelosi and Chuck Schumer, the Democratic leaders in the House and Senate, respectively, over border wall funding and a government shutdown raised the prospect of worsening Washington gridlock.
That exchange sent stocks lower.
On Wednesday, investors will get another look at inflation, this time on the retail level with a check on consumer prices.
Fox Business’ Mike Obel contributed to this article.
