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European Shares Seen Higher At Open As Trade Optimism Prevails

asian markets1 04nov19

European stocks are likely to open higher on Monday amid fresh optimism on the trade front after U.S. Commerce Secretary Wilbur Ross said licenses could be granted to American firms to do business with China's Huawei, which was placed on a blacklist over alleged national security concerns earlier this year.

Ross also said that there was "no natural reason" why a "phase one" trade deal couldn't be reached this month.

Asian markets gained ground as progress in the long drawn Sino-U.S. trade talks and strong U.S. jobs data released on Friday boosted investors' appetite for risk.

Further adding to the upbeat sentiment, Federal Reserve Vice Chairman Richard Clarida said Friday that he's "very happy" with U.S. monetary policy and that the economy is "in a good place".

Gold held steady in Asian trading as the dollar dipped on data showing a continued contraction in U.S. manufacturing activity in October.

The euro started the week on a firm note as investors awaited the first official speech from the new head of the European Central Bank later today. Oil prices eased after climbing nearly 4 percent on Friday.

Factory Purchasing Managers' survey results from euro area and other major euro area economies are due later in the day, headlining a light day for the European economic news.

U.S. stocks rallied on Friday, with the Nasdaq Composite and the S&P 500 reaching fresh record closing highs, as investors cheered better-than-expected jobs data and some relatively positive trade-war headlines. The major averages rose between 1 percent and 1.1 percent.

The Labor Department report showed that U.S. non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.

There was substantial upward revisions to job growth in September and August, with revised data showing employment climbing by 180,000 jobs and 219,000 jobs, respectively.

Sentiment was also helped by fresh optimism about a U.S.-China trade deal after a report from China's Xinhua News Agency said negotiators have "reached consensus on principles."

European markets advanced on Friday after surprisingly strong data in both the U.S. and China. The pan European Stoxx 600 gained 0.7 percent to settle at its highest level since Jan. 29, 2018.

The German DAX rose 0.7 percent, France's CAC 40 index added 0.6 percent and the U.K.'s FTSE climbed 0.8 percent.

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