London (AFP) - Global stock markets mainly rose Tuesday on optimism over trade talks between Beijing and Washington, with corporate results also heartening investors.

Wall Street was modestly higher approaching midday in New York with investors broadly satisfied with the first batch of results in the third-quarter earnings season.

“US stocks are nudging to the upside, with Dow member Johnson & Johnson highlighting a busy mixed earnings calendar as the season continues to ramp up,” said analysts at Charles Schwab brokerage.

Johnson & Johnson shares climbed more than two percent after the company reported a 3.9-percent increase in operating revenue in the first quarter, far outpacing its earlier forecast for a nearly stagnant 2019.

European markets, however, posted more solid gains.

- Asia ‘has rubbed off’ -

“Equity markets in Europe are higher as the positive move in Asia overnight has rubbed off on European sentiment,” said CMC Markets UK analyst David Madden.

“Firmer property prices in China combined with continued optimism surrounding the US-China trade talks drove Chinese stocks higher. The bullish sentiment spilled over to Europe.”

Earlier, Asian equities also rose, on the eve of vital Chinese first-quarter economic growth data, as investors brushed off a weak lead from Wall Street on Monday.

High-level talks between China and the United States aimed at ending their long-running trade war are also being closely followed, with most observers optimistic they would reach a deal.

Both sides have sounded positive, and expectations for a deal have been a key driver of a rally in global markets this year and in offsetting worries about the outlook for the world economy.

- Strong UK employment -

London’s FTSE 100 was helped by news that British employment has reached a record-high level, shaking off uncertainty surrounding Brexit.

And Frankfurt, the day’s best European performer, received a boost from rising investor confidence, dealers said.

A closely watched German measure of investor confidence has clambered back into positive territory, data showed Tuesday, pointing to a brighter outlook.

The ZEW institute’s barometer added 6.7 points for a reading of 3.1 in April, it said after its regular monthly polling of around 200 financial players and analysts.

That was the first positive reading for the indicator in just over a year, a period in which threats to growth such as Brexit, trade wars and weakness in emerging markets have plagued investors.

- Key China data loom -

Investor focus turns now to China’s economic growth figures on Wednesday, which come after a number of upbeat readings on the world’s number two economy – including factory activity, inflation, new loans and trade – that have given some cause for optimism.

“China has implemented a huge amount of stimulus into the economy more recently to deal with the impact of trade wars and a general synchronised slowdown,” said analyst Sam Buckingham at Thomas Miller Investment.

“We are starting to see the positive signs of this stimulus showing up in some of the country’s soft-data series.

“If the hard data, such as GDP growth, does not follow this same path and in fact undershoots expectations, we would expect volatility, i.e. fear, to increase in financial markets.”

- Key figures around 1545 GMT -

London - FTSE 100: UP 0.4 percent at 7,469.92 points (close)

Frankfurt - DAX 30: UP 0.7 percent at 12,101.32 (close)

Paris - CAC 40: UP 0.4 percent at 5,528.67 (close)

EURO STOXX 50: UP 0.4 percent at 3,463.36

New York - Dow: UP 0.2 percent at 26,431.86

Pound/dollar: DOWN at $1.3046 from $1.3100 at 2100 GMT on Monday

Euro/pound: UP at 86.85 pence from 86.30 pence

Euro/dollar: DOWN at $1.1289 from $1.1304

Dollar/yen: DOWN at 111.95 yen from 112.04 yen

Tokyo - Nikkei 225: UP 0.2 percent at 22,221.66 (close)

Hong Kong - Hang Seng: UP 1.1 percent at 30,129.87 (close)

Shanghai - Composite: UP 2.4 percent at 3,253.60 (close)

Oil - Brent Crude: UP 4 cents at $71.22 per barrel

Oil - West Texas Intermediate: UP 16 cents at $63.54

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