European stocks may open a tad higher on Monday amid bets the U.S. and China were making progress on a trade agreement.
Citing phone conversation between Chinese Vice-Premier Liu He and U.S. Trade Representative Robert Lighthizer and Steven Mnuchin, Xinhua news agency reported on Friday that concrete progress had been made on the text of the trade agreement between the two sides.
Asian markets are trading mostly higher, with Chinese and Hong Kong shares leading regional gains after China last week vowed strong measures to boost economic growth.
The dollar continued to slide as weak U.S. data reinforced expectations the Federal Reserve will remain on a wait and watch mode through 2019.
The Federal Open Market Committee (FOMC) meets this week and there is little chance of a change in policy.
The Bank of England will also make its policy announcement this week, although no changes are expected.
In commodities, gold and oil prices edged lower in Asian trade.
U.S. stocks fluctuated before finishing higher on Friday, as optimism about U.S.-China trade talks as well as indications of more Chinese economic stimulus offset some disappointing U.S. economic data.
The Dow rose half a percent, while the tech-heavy Nasdaq Composite and the S&P 500 added 0.8 percent and half a percent, respectively to reach their best closing levels in five months.
European markets advanced on Friday as Brexit-related worries eased and Chinese Premier Li Keqiang pledged support for the slowing economy.
The pan European Stoxx 600 rose 0.7 percent. The German DAX gained 0.9 percent, France’s CAC 40 index surged 1 percent and the U.K.’s FTSE 100 added 0.6 percent.
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