LONDON: European stock markets edged higher Tuesday as dealers tracked soaring oil prices, trade worries and corporate newsflow on the eve of the Federal Reserve's interest rate call.
Asian bourses mostly rose in muted deals with Hong Kong and Seoul remaining shut for public holidays.
European indices advanced but gains were tempered somewhat before Wednesday's Fed gathering, dealers said.
"Investors continue to keep a weather eye on the trade war situation," said IG analyst Chris Beauchamp.
"But even without any further meaningful headlines on this front the upcoming Fed meeting ... means that most are content to await developments rather than rushing in to try and join in the general bounce in equities seen over the past week."
- Oil boost -
Brent oil rebounded close to a four-year peak above $82 per barrel, on worries over stretched global supplies due to US sanctions on Iran.
Energy firms enjoyed big gains on this week's surge in oil prices, after the world's top producers agreed to maintain output despite pressure from US President Donald Trump.
Higher oil prices translate into bumper profits and revenues for European oil giants like BP, Royal Dutch Shell and Total.
BP and Shell shares each won about two percent in London, while Total gained 1.7 percent in Paris.
Investors remain cautious after the latest tit-for-tat tariffs in the US-China trade row.
While the levies had been widely expected, there are concerns about how long the dispute will last after China cancelled planned talks and said negotiations "cannot be carried out under the threat of tariffs".
Vice commerce minister Wang Shouwen said Tuesday it was impossible to negotiate while Washington is imposing tariffs that are like "holding a knife to someone's throat". He accused the US of abandoning a consensus struck in May.
- Brexit warning -
In London, shares in clothing retail chain Next soared almost 10 percent, despite a warning over the risks of port delays and increased tariffs from a possible no-deal Brexit.
The group also insisted that the direct risks of a no-deal scenario did not "post a material threat to the ongoing operations and profitability of Next's business".
Investors focused on positive news that Next upped its full-year profits outlook after a bright first half.
British American tobacco meanwhile saw its shares drop one percent after appointing chief operating officer Jack Bowles to replace outgoing chief executive Nicandro Durante.
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