Miners lift European stocks amid optimism over US-China trade talks

European shares were higher on Wednesday morning, as market participants monitored signs of progress in U.S.-China trade talks.

The pan-European Stoxx 600 index was up around 0.7 percent during mid-morning deals, with most sectors and major bourses in positive territory. The benchmark had climbed to its highest level in almost 8 months shortly after the opening bell, before paring some of its gains.

Europe’s basic resources stocks, with their heavy exposure to China, jumped almost 2 percent on Wednesday. It comes at a time when investors are hopeful a new round of trade talks between the world’s two largest economies could bring an end to a protracted dispute.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to resume negotiations with Chinese Vice Premier Liu He in Washington on Wednesday, shortly after both sides reported progress from talks in Beijing last week.

Looking at individual stocks, France’s Casino Guichard slumped toward the bottom of the index after Moody’s cut its long-term ratings for the firm. Shares of the supermarket retailer dipped more than 2 percent lower.

Business activity across the euro zone was sluggish last month, official data showed on Wednesday. IHS Markit’s Euro Zone Composite Final Purchasing Managers’ Index (PMI), widely seen as an indicator of overall economic health, stood at 51.6 in March, down from 51.9 in February.

Brexit drama

U.K. Prime Minister Theresa May has said she will ask the EU for an extension to the Brexit deadline in order to “break the logjam” in Parliament.

Speaking on Tuesday evening, May said she wanted to meet with Labour leader Jeremy Corbyn to agree a plan on the future relationship with the EU.

If nothing is passed in the House of Commons over the coming days, the world’s fifth-largest economy is set to leave the bloc without a deal on April 12.

Source: CNBC