Plus   Neg

European Shares To Open Firm On Trade Optimism


European stocks may open on a firm note Monday as investors pin hopes for progress in the Sino-U.S. trade talks and await more policy stimulus from major central banks.

However, trading volumes could be on the light side because of the Presidents' Day holiday in the U.S.

The dollar eased on expectations of a U.S.-Sino trade deal as trade negotiations continue this week in Washington.

U.S. duties on $200 billion worth of Chinese imports will likely rise from 10 percent to 25 percent if no deal is reached by March 1.

Asian markets remain broadly higher on trade optimism while oil hovered near three-month highs.

U.S. stocks ended mostly higher on Friday after a statement from the White House said high level U.S.-China trade talks led to "progress between the two parties" but "much work remains."

The White House said the U.S. hopes to see additional progress as discussions at the ministerial and vice-ministerial levels continue in Washington this week.

The Dow Jones Industrial Average jumped 1.7 percent and the tech-heavy Nasdaq Composite rose 0.6 percent to reach their best closing levels in three months while the S&P 500 rallied 1.1 percent to close at a two-month high.

President Trump declared a national emergency Friday, appropriating $8.1 billion dollars, including $6 billion from the Pentagon, to build a wall along the southern border.

He also signed a bipartisan spending deal that kept the government open and allocated another $1.375 for adding barriers to another 55 miles of the border.

European markets ended Friday's session sharply higher, with upbeat corporate earnings reports and comments from an ECB official about a likely fresh round of long-term loans to banks aiding sentiment.

The pan European Stoxx 600 rose 1.4 percent to log its best weekly gain in three and half months. The German DAX surged 1.9 percent, France's CAC 40 index jumped 1.8 percent and the U.K.'s FTSE 100 added 0.6 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT