European stocks were higher Monday morning, as investors awaited economic data and monitored ongoing trade talks between the world’s two largest economies.
The pan-European Stoxx 600 was up around 0.45% during early morning deals, with almost all sectors and major bourses in positive territory.
It has long been expected that both sides would reach an agreement in order to avoid the U.S. imposing an additional 15% tariff on approximately $156 billion of Chinese products on Dec. 15.
However, the two economic powerhouses have so far been unable to agree on the terms of a limited trade deal. Beijing has demanded that all existing duties on Chinese goods must be scrapped as part of any agreement.
The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
Europe’s basic resources stocks — with their heavy exposure to China — led the gains shortly after the opening bell, up around 1.5%. Tullow Oil, Rio Tinto and Glencore were among the sector’s top performers, all trading more than 1.7% higher.
Looking at individual stocks, Germany’s Lufthansa led the gains among travel and leisure stocks on Monday morning. It comes shortly after reports emerged suggesting that Qatar Airways was considering taking a stake in the company. Shares of Lufthansa were up over 1% on the news.
Sticking with Germany, Deutsche Bank shares slipped almost 1% during morning deals. The U.S. Department of Justice is thought to be stepping up its investigation into the flagship lender’s role in the 200 billion euro ($220 billion) Danske Bank money laundering scandal, Reuters reported on Monday, citing four unnamed sources familiar with the matter.
On the data front, a final reading of euro zone Markit manufacturing PMI (Purchasing Managers’ Index) for November will be released during morning deals.
Elsewhere, President Donald Trump is expected to arrive in the U.K. on Monday morning ahead of a NATO summit. His trip to London comes at a hyper-sensitive time in U.K. politics, with just 10 days to go before Britons head to the ballot box.