European markets traded higher on Monday morning, with investors hopeful of progress in the U.S.-China trade dispute.
The pan-European Stoxx 600 climbed 0.7% in early deals, with basic resources adding 1.9% to lead gains as all sectors and major bourses entered positive territory.
U.S. National Security Advisor Robert O’Brien on Saturday said a so-called “phase one” deal with China could still be reached by the end of the year. However, he also emphasized that Washington would not turn a blind eye to the Hong Kong protests.
The embattled city saw the opposition pro-democracy movement make significant gains in local elections this weekend, with Hong Kong’s democrats securing a symbolic majority as residents turned out in record numbers to vote.
In Asia, shares rose as traders monitored the outcome of the Hong Kong vote. The MSCI Asia ex-Japan index gained over 0.3%.
Back in Europe, Britain’s two main political parties have now both launched their manifestos in separate bids to win over the public ahead of a crucial Dec. 12 election.
The opposition Labour party kicked things off last Thursday with a manifesto promising a windfall tax on oil companies and renationalization of some industries, while the Conservatives launched their own plan for the U.K. that would see 50,000 additional nurses in the National Health Service by the end of Parliament.
In corporate news, France’s LVMH confirmed that it has reached a deal to buy U.S. luxury jeweler Tiffany & Co. for $16.2 billion. LVMH shares rose by 1.4% in early trade, while Tiffany’s German-listed shares jumped 6.7%.
As for economic data, investors will be monitoring German business sentiment figures due to be released by the Ifo Institute Monday morning.
In terms of individual stock moves, Italy’s Prysmian added 4.4% after its Western Link project was taken over by the client, according to Reuters, while compatriot Atlantia slid 1.5%.