A look at the day ahead in European and global markets from Johann M Cherian

With precious little to report out of Sino-U.S. trade talks in London, investors are ready to pounce on almost any sign a thaw in the frigid relationship between the two superpowers is just around the corner.

Stocks in Asia are creeping higher, as are U.S. EScv1 and European equity futures STXEc1, while the dollar =USD was also a tad firmer after President Donald Trump said he was getting "good reports" from Monday's meeting with China.

Talks resume at 0900 GMT on Tuesday at Lancaster House and markets want a deal to flesh out details around U.S. tech export controls and those around Chinese rare earths, and of course, where the final average rate of tariffs will settle.

Recent data indicates the trade war is taking a toll on both major economies, which could soon rattle other major economies.

Global investors are also in the market for fresh trade deals, with about a month left before Trump's tariff pause expires.

Also expected out of the UK will be an employment report with investors and the Bank of England keen on how pay growth - a reflection of broader price pressures - fared in April.

Signs of cooling wage growth could be a relief for BoE policymakers who are currently divided on the approach to further monetary policy easing.

Meanwhile, the global healthcare sector was caught in the crossfire as vaccine sceptic U.S. Health Secretary Robert F. Kennedy Jr. fired all members of a U.S. Centers for Disease Control and Prevention panel of vaccine experts.

The move could be a headache for companies such as GSK GSK.L, Sanofi SASY.PA, AstraZeneca AZN.L, Moderna MRNA.O and BioNTech 22UAy.DE as they face longer waits for vaccine approvals.

Advertising firms weren't spared from scrutiny either as the Wall Street Journal reported that the U.S. Federal Trade Commission has sought information from some of the industry's leading firms.

Omnicom OMC.N, WPP WPP.L, Dentsu 4324.T, Interpublic Group IPG.N and Publicis Groupe PUBP.PA were among those asked by the watchdog on whether advertising and advocacy groups violated antitrust laws by coordinating boycotts of certain sites.

Key developments that could influence markets on Tuesday:

- UK May BRC retail sales

- UK April employment data

- U.S. 3-year Treasury note auction

- Reserve Bank of Australia Governance Board meeting

Trying to keep up with the latest tariff news?

Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here.

(Editing by Sam Holmes)