Stock markets diverged Tuesday as traders monitored key economic indicators, with US inflation data due later this week that could influence Federal Reserve policy.Paris, Frankfurt and London equities rose as investors digested purchasing managers’ index (PMI) data — a closely watched gauge of economic health. The index showed eurozone business activity hit a 16-month high in September, partly driven by solid growth in Germany, while France weighed on performance.Britain’s reading came in below expectations, suggesting the economy is losing momentum, analysts noted.Gold pushed to another all-time high and the dollar steadied. Oil prices rose around one percent after the OECD on Tuesday raised its forecast for world economic growth this year. In focus is Friday’s report on US personal consumption expenditures, the Federal Reserve’s preferred measure of inflation. Markets expect two further interest rate cuts by the Fed by the end of the year as officials aim to shore up the stuttering labour market despite elevated inflation. With trade subdued by a holiday in Japan and an approaching typhoon in Hong Kong, Asian markets mostly drifted.Hong Kong and Shanghai both closed lower. Taipei jumped more than one percent, with chip titan TSMC soaring over three percent as it tracked US counterpart Nvidia, which announced a $100 billion investment in OpenAI for next-generation artificial intelligence.A rise in tech giants helped lift major Wall Street indices to fresh highs on Monday.However, there are growing worries that the surge may have gone too far and markets are due a pullback with eyes on a possible government shutdown in Washington.”Equity indices are soaring even as the real (US) economy shows signs of strain,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.”For now, optimism around AI-driven growth and record levels of investment is keeping momentum alive, but the balancing act is precarious,” he added.Elsewhere, investors will keep an eye on an expected meeting between US President Donald Trump and his Argentine counterpart Javier Milei at the UN General Assembly. The US Treasury said Monday it stood ready to “do what is needed” to support Argentina’s economy, which has faced a plunge in the peso, stocks and bonds. Financial markets have been rattled by recent provincial election defeats for Milei’s party. – Key figures at around 1040 GMT -London – FTSE 100: UP 0.1 percent at 9,231.35 pointsParis – CAC 40: UP 0.6 percent at 7,879.24 Frankfurt – DAX: UP 0.2 percent at 23,575.63Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,159.12 (close)Shanghai – Composite: DOWN 0.2 percent at 3,821.83 (close)Tokyo – Nikkei 225: Closed for a holidayNew York – Dow: UP 0.1 percent at 46,381.54 (close)Euro/dollar: DOWN at $1.1792 from $1.1799 on MondayPound/dollar: DOWN at $1.3501 from $1.3515Dollar/yen: DOWN at 147.76 yen from 147.87 yenEuro/pound: UP at 87.34 pence from 87.30 penceWest Texas Intermediate: UP 1.2 percent at $63.03 per barrelBrent North Sea Crude: UP 1.1 percent at $67.27 per barrel

Indonesia and the European Union finalised negotiations on a trade agreement Tuesday after nearly a decade of talks, a senior minister said.The Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA) is the third deal Brussels has signed with Southeast Asian countries, after Singapore and Vietnam.The pact was signed by EU Trade Commissioner Maros Sefcovic and Indonesian Minister of Economic Affairs Airlangga Hartarto in Bali and will open investment in strategic sectors such as electric vehicles, electronics, and pharmaceuticals.”By finalising this agreement, the EU and Indonesia are sending a powerful message to the world that we stand united in our commitment to open rules-based and mutually beneficial international trade,” Sefcovic said after the signing.”In all, EU exporters will save some 600 million euros ($708 million) a year in duties paid on their goods entering the Indonesian market, and European products will be more affordable and available to Indonesian consumers,” EU President Ursula von der Leyen said in a statement.Indonesia has been in talks with the EU since 2016, but negotiations for a trade deal initially saw little progress.Issues such as palm oil and deforestation posed stumbling blocks, but US President Donald Trump’s sweeping tariff policy “created the urgency” to expedite an agreement, said Deni Friawan, researcher at the Centre for Strategic and International Studies.The trade deal also included a protocol on palm oil, the EU said in a statement, without providing details.”This is a ten-year journey that has resulted in a milestone that reflects our commitment and the commitment of stakeholders to an open, fair, and sustainable economic assistance,” Airlangga told a news conference.The agreement is expected to be implemented by 2027, Airlangga added.Around 80 percent of Indonesian exports to the EU will be tariff-free after the deal comes into force, Airlangga said in June.- Access opens –It is expected to benefit the country’s top shipments to the bloc including palm oil, footwear, textiles and fisheries, he added.The EU is Indonesia’s fifth-largest trading partner with bilateral trade reaching $30.1 billion last year.The agreement would further open up EU access to the Indonesian market of around 280 million people, Deni said.Ties had been frayed by issues including a proposed import ban by Brussels on products linked to deforestation that has angered Indonesia, a major palm oil exporter.Under the EU deforestation regulation, exports of a vast range of goods — including soy, timber, palm oil, cattle, printing paper and rubber — are prohibited if produced on land deforested after December 2020.The EU on Tuesday proposed postponing the regulation’s implementation by another year after a backlash.However, activists are concerned the trade agreement will lead to more deforestation driven by increased demand for Indonesian palm oil.”The remaining natural forests in palm oil concessions will potentially be cleared in the near future (and) converted into plantations,” said Syahrul Fitra of Greenpeace Indonesia.