Europe midday: Investors tread carefully despite positive news on US-China trade
Stocks on the Continent are trading on a mixed note, with investors cautiously optimistic as US-China trade talks appear to move into their final phase.
Analysts appeared to be especially wary given the sharp rally in global stockmarkets since the start of the year, bringing some European equity benchmarks up against key levels of technical resistance.
On that note, CMC Markets UK's Michael Hewson was telling clients that: "European markets have picked up on this positive vibe, opening higher with the DAX closing in on its 200 day MA and at its highest levels since October.
"While this morning’s optimism is all well and good, it does beg the question as to how much is already baked in to the price [...]."
As of 1102 GMT, the benchmark Stoxx 600 was edging higher by 0.27% to 375.26, alongside a 0.39% gain for the French Cac-40 to 5,290.27, but Milan's FTSE Mibtel was drifting lower by 0.20% to 20,657.16.
In parallel, euro/dollar was lower by and front month Brent crude oil futures were up by 0.9% to $65.66 a barrel on the ICE.
Washington and Beijing were reportedly near to inking a trade deal, although China was said to be pushing for the quick removal of the bulk of US tariffs on its merchandise exports, whereas America was proposing a phased roll-back subject to the Asian country carrying through on its commitments.
Progress in talks was apparently confirmed by the spokesman for the National People's Congress, Zhang Yesui, who on Monday said that officials from both sides had "conducted fruitful and intensive consultations and made important progress on many issues of common concern."
But according to Bloomberg, a senior US administration official had cautioned on Sunday that no decision had yet been taken on the lifting of trade levies. On Friday, US President Donald Trump had asked that China lift all duties on US agricultural exports immediately.
The economic calendar was light at the start of the week, with the lone indicator on tap being producer price data for January.
Eurostat reported a 0.4% month-on-month increase in factory gate prices, such that the year-on-year rate was steady at 3.0% (consensus: 2.9%).