* European stocks in positive territory
* FTSE hits new record high
* Brexit worries push sterling to new lows
* U.S. stock index futures trade with slight gains
* Oil prices edge up, stable after Monday's sell-off
* Turkish lira tumbles to fresh record low
* Live Markets blog: reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Recasts, updates throughout)
By Dhara Ranasinghe
LONDON, Jan 10 World stock markets nudged back
towards recent multi-month highs on Tuesday, aided by a rally in
commodity prices, although sterling slid for a second straight
day on concerns over Britain's future ties with the European
European stock markets, which had opened broadly lower
, edged back towards recent one-year peaks, while U.S.
stock futures traded marginally higher.
The recovery in share prices came as commodities such as
copper gained on further signs of a pick-up in China's economy,
while oil prices stabilised after falling almost 4 percent on
Monday on doubts that key oil producers would cut output as
promised to reduce oversupply.
Brent crude oil prices rose 0.4 percent to $55.14,
moving away from Monday's low of $54.74.
Resource stocks were the biggest gainers in European share
markets, with the sector up 2.8 percent, while Britain's
blue-chip FTSE index hit a record high on sterling
Britain's currency hit a fresh 10-week low against the
dollar and an eight-week low against the euro
after weekend comments by British Prime Minister Theresa May
that she was not interested in Britain keeping "bits" of its EU
A revival in worries that Britain could be headed for a
"hard Brexit", in which it chooses to take full control of
immigration and give up access to the single market,
reverberated across financial markets, lifting demand for
safe-haven assets such as German government bonds
and gold, which rose to its highest level in over a
EYES ON TRUMP
With little in the way of major U.S. data on the calendar,
attention was turning to a news conference on Wednesday by U.S.
President-elect Donald Trump, his first since winning the
On Monday, declines in energy and financial stocks weighed
on the S&P 500 and helped stall the Dow's pursuit of the 20,000
milestone ahead of earnings season and expected U.S. policy
changes under Trump.
"Cautiousness ahead of the news conference is turning into a
bit of optimism, if you look at how Trump's tweets are playing
out in the market," said Naeem Aslam, chief market analyst at
Think Markets UK.
"Investors are optimistic after the news on Jack Ma - if
he's going to create a million jobs in the U.S., perhaps there
won't be too much negative sentiment towards trade-related
Alibaba Executive Chairman Jack Ma met Trump on Monday and
laid out the Chinese e-commerce giant's new plan that it hopes
will create 1 million U.S. jobs.
How U.S. relations play out with China, the world's second
biggest economy, are also a key focus for currency markets,
injecting a degree of nervousness.
The dollar dipped against the euro and yen, and was
virtually flat against a basket of six major peers, at 101.93
, holding below last week's high of 103.82, its highest
level since 2002.
"The market is increasingly nervous about Donald Trump's
press conference - for FX markets what will be particularly
important will be his plans ... for the trade policy, for the
relationship with China," said Commerzbank currency strategist
Esther Reichelt, in Frankfurt.
"The Fed has stressed this enormous uncertainty, so ... the
main driver right now (for the dollar) is not monetary policy,
because monetary policy will react to what we're going to hear
from Donald Trump in the next couple of weeks."
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan advanced just 0.5 percent, while
Chinese stocks were little changed, largely shrugging
off further signs of improvement in the industrial sector. Data
showed producer inflation surged to a more than five-year high
in December as raw materials prices soared.
A fall in the Turkish lira meanwhile grabbed the spotlight
in emerging markets.
The lira slumped 1.6 percent to a fresh record low of 3.77
against the dollar, having weakened almost 7 percent
since the start of the year on the weakening economy and
(Additional reporting by Nichola Saminather in Singapore and
Jemima Kelly in London; Editing by Janet Lawrence)