European Stocks Are Higher As Optimism Returns Over Progress On U.S.-China Trade Talks

European stocks are higher on Wednesday as the mood switches from gloom to optimism over U.S.-China trade talks, once again.

European stock markets are gaining on Wednesday as the trade-talk pendulum swings higher after a report that Washington and Beijing are still working toward a phase one deal.

European stocks shot higher on Wednesday, after a report that the U.S. and China are moving closer on an agreement for a phase one trade deal, even after President Donald Trump cast doubt on progress a day earlier.

The Stoxx Europe 600 rose 1.1% to 402.33 after ending Tuesday’s session down 0.6%, the fourth straight losing session. For the week so far, the index has lost 1.3%.

The German DAX rose 1.1% to 13133.62, while the French CAC 40 rose 1.2% to 5793.61. The FTSE 100 rose 0.3% to 7183.12, with gains tempered as a rise in the pound weighed on U.K.-based multinationals who earn the bulk of their profits outside the country.

U.S. stock futures climbed on Wednesday after Bloomberg reported, citing sources, that Beijing and Washington were progressing toward a phase one deal and deciding which tariffs would be waived in that agreement.

Wall Street equities suffered a third straight day of declines on Tuesday, after President Donald Trump said a deal with China may not come until after the U.S. elections next year.

Trade issues have ramped up this week, as the U.S. reintroduced tariffs on Brazil and Argentina, and threatened tariffs on cheese, champagne and handbags from France, which vowed retaliatory action.

On the data front, European stocks saw some support after the Markit eurozone November services purchasing managers index came in at 51.9, versus forecasts of 51.5. But it was down from 52.2 in October. The final eurozone composite output index was 50.6, from an initial 50.3.

Among stocks on the move, shares of Orange fell nearly 5% after the telecommunications provider updated on short and medium-term targets.

Shares of Cineworld Group jumped nearly 7%, after Jefferies analysts reiterated a buy recommendation on the movie theater operator.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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