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European Shares Seen Extending Gains

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The stock markets in Europe are likely to open on a positive note on Monday, extending gains from previous session, amid optimism about a U.S.-China trade deal sometime soon, and on rising oil prices.

Markets across the Asia-Pacific region were moving higher on Monday, on renewed optimism about trade talks.

Later on in the session, markets may react to a slew of economic data from the region as well as economic reports from the U.S. and news about the partial government shutdown there.

Markets are hoping that the vice ministerial level trade talks between the U.S. and China due to start in Beijing today would help bring about a solution to the trade disputes between the world's two largest economies and reduce fears about global economic slowdown.

Meanwhile, the fairly upbeat jobs data released by the Labor Department on Friday has helped ease concerns about U.S. economic growth.

Crude oil prices are up more than 1.5 percent amid optimism a resolution to U.S.-China trade disputes would help revive global growth and result in increased energy demand. West Texas Intermediate crude futures for February were climbing up 1.6 percent to $48.70 a barrel, while Brent Crude futures were up 1.3 percent at $57.80 a barrel.

Meanwhile, on the Brexit front, more than 200 MPs from different political parties have reportedly signed a letter to Theresa May, urging her to rule out a no-deal Brexit. According to reports, the MPs have been invited to meet May on Tuesday.

On the economic front, data on Germany's retail sales and factory orders are due at 2 AM ET. A report on construction activity in Germany in the month of December is due out at 3.30 AM ET.

A preliminary report on December consumer price inflation in Italy is also due today.

The Sentix Investors Confidence reading for Eurozone is due at 4:30 AM ET. At 5 AM ET, a report on Eurozone retail sales for the month of November is due.

Later in the day, markets will be reacting to reports on U.S. manufacturing activity in the month of December and factory orders data.

On Friday, Germany's DAX climbed 3.37 percent and the CAC 40 of France surged up 2.72 percent. The U.K.'s FTSE 100 gained 2.18 percent, while the SMI of Swtizerland ended up 1.68 percent.

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