· U.S. stocks climbed on Monday, but finished off earlier highs, led by gains in technology stocks on optimism for progress in U.S.-China trade talks and signs of a likely reprieve for Chinese telecom company Huawei.

The Dow Jones Industrial Average .DJI rose 117.47 points, or 0.44%, to 26,717.43, the S&P 500 .SPX gained 22.57 points, or 0.77%, to 2,964.33 and the Nasdaq Composite .IXIC added 84.92 points, or 1.06%, to 8,091.16.

Stocks saw their steepest sell-off this year in May, a 6.6% decline, after a breakdown in the U.S.-China trade talks sparked concerns of a global economic slowdown.

Despite the latest development in talks, traders still anticipate the Fed’s next move will be a rate cut of at least a quarter of a percentage point at its July 30-31 policy meeting.

Data showed growth in manufacturing cooled in the United States in June while factory activity shrank across much of Europe and Asia, further supporting expectations of a rate cut.

· Asia Pacific markets mostly rose on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on slapping additional tariffs in an effort to resume trade talks.

Mainland Chinese shares soared on the day. The Shanghai composite added 2.22% to about 3,044.90, while the Shenzhen component soared 3.84% to 9,530.46. The Shenzhen composite also added 3.464% to approximately 1,616.55. The CSI 300 index, which tracks the largest listed stocks on the mainland, added 2.88% to around 3,935.81.

· European stocks traded higher Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on additional tariffs in a bid to reignite trade talks.

The pan-European Stoxx 600 closed 0.9% in afternoon trade, slightly cutting its early surge after weak euro zone PMI data. Technology stocks led gains, up nearly 2% having hit a 1-year high earlier in the session. Food and beverages was the only sector trading in the red.

· Stocks in Asia were mixed in Tuesday morning trade. Meanwhile, the S&P 500 touched a record high overnight on Wall Street on the back of a recent pause in tariff escalation between the U.S. and China.

The Nikkei 225 in Japan added 0.12% in early trade, while the Topix rose 0.13%.

In South Korea, however, the Kospi slipped 0.4%

Over in Australia the S&P/ASX 200 gained 0.27% as most sectors advanced.

Reference: Reuters, CNBC