European markets to open higher after US-China trade truce

European markets are expected to surge at Monday’s open after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on additional tariffs in a bid to reignite trade talks.

The FTSE 100 is seen around 62 points higher at 7,488, the DAX is expected to climb around 43 points to 12,541, and France’s CAC 40 is set to open up around 51 points at 5,589, according to IG data.

Following a meeting on the sidelines of the Group of Twenty (G-20) summit over the weekend, President Trump and President Xi confirmed that they do not intend to levy any new tariffs against each other’s products at present, while Trump suggested a reversal of his administration’s decision to ban American companies from selling products to Chinese telecommunications giant Huawei.

Stocks in Asia Pacific mostly rose in Monday afternoon trade as investors reacted to the weekend’s news. Mainland Chinese shares soared, led by the Shenzhen component which jumped 3.23% while the Shenzhen composite also added 2.93%.

Back in Europe, an emergency European Union summit to decide top jobs at the bloc ran into trouble again, after a deal hatched by several European leaders to appoint former Dutch foreign minister Frans Timmermans as president of the European Commission was rejected by center-right and eastern European leaders.

European investors and brokers are scrambling for solutions before a block on Swiss shares trading on EU exchanges  comes into force Monday, following the collapse of political treaty talks between Switzerland and the EU.

Turkish President Tayyip Erdogan said the first delivery of the Russian S-400 missile defense system will take place within 10 days, broadcaster NTV reported on Sunday, a day after Erdogan said Trump had told him there would be no U.S. sanctions over the deal.

Source: CNBC