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World stock markets sustained by dogged trade optimism

Wall Street traders welcomed an ISM survey that showed activity in the US service sector jumping in October

Global stock markets posted mostly modest gains Tuesday as dogged trade optimism roused those ready to take on more risk.

Global bourses sailed higher Monday amid anticipation that economic superpowers China and the United States were close to breaking a deadlock in trade talks.

Those gains were largely buttressed Tuesday by reports that US President Donald Trump might remove or roll back some tariffs on Chinese goods, and cancel those planned for next month.

"Put simply, it has been another risk-on day," remarked Fawad Razaqzada, an analyst at Forex.com.

Markets also rose on a reported easing in China's one-year lending rate, while London traders welcomed a survey that showed Britain's crucial services sector had avoided contraction in October.

The Financial Times and Wall Street Journal reported Tuesday that the White House is considering dropping existing tariffs on more than $100 billion of imports to seal a mini deal with China that has teased investors many times already.

"The US and China seem to be inching closer to sealing the phase one deal, although there are still hurdles," said Neil Wilson at Markets.com.

The FT cited unnamed sources as saying officials were looking at rolling back levies on a range of imports including clothing, appliances, and flat screen monitors that have been subject to 15-percent rates since September 1.

In Asia, Tokyo led gainers as it reopened after a long weekend to play catch-up with Monday's rally.

The Nikkei ended 1.8 percent higher, while Shanghai rose 0.5 percent and Sydney added 0.2 percent.

Hong Kong won 0.5 percent as investors brushed off data showing a key measure of business confidence fell to its lowest level in more than a decade as the city reels from global trade woes and violent protests.

Trading was moderately upbeat in New York, with the blue-chip Dow index edging up 0.1 percent to a record for a second straight session after a survey by the Institute for Supply Management showed activity in the US service sector jumped unexpectedly in October, a welcome sign of sustained growth.

The dollar also gained ground.

Among individual stocks, Dow member Boeing rose 2.1 percent after Chairman David Calhoun gave a forceful vote of confidence in CEO Dennis Muilenburg and said the 737 MAX was on track to receive regulatory approval this year to return to service after two deadly crashes.

- Key figures around 2130 GMT -

New York - Dow: UP 0.1 percent at 27,492.63 (close)

New York - S&P 500: DOWN 0.1 percent at 3,074.62 (close)

New York - Nasdaq: UP less than 0.1 percent at 8,434.68 (close)

London - FTSE 100: UP 0.3 percent at 7,388.08 (close)

Frankfurt - DAX 30: UP 0.1 percent at 13,148.50 (close)

Paris - CAC 40: UP 0.4 percent at 5,846.89 (close)

EURO STOXX 50: UP 0.3 percent at 3,676.52 (close)

Tokyo - Nikkei 225: UP 1.8 percent at 23,251.99 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 27,683.40 (close)

Shanghai - Composite: UP 0.5 percent at 2,991.56 (close)

Euro/dollar: DOWN at $1.1073 from $1.1128 at 2100 GMT

Dollar/yen: UP at 109.16 yen from 108.58 yen

Pound/dollar: DOWN at $1.2883 from $1.2884

Euro/pound: DOWN at 85.94 pence from 86.37 pence

Brent North Sea crude: UP 1.3 percent at $62.96 per barrel

West Texas Intermediate: UP 1.2 percent at $56.54 per barrel

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