European markets set for a strong open on Sino-US trade deal hopes

Markets in Asia started off a new trading week on a robust note, with Chinese stocks soaring following a new report concerning trade negotiations. On Sunday, the Wall Street Journal reported that Beijing was proposing to reduce levies on a number of American products, including auto and farm goods, as part of securing a deal with Washington, which is reportedly close to completion.

The media report went on to state that as part of this pact, the U.S. is mulling over whether to eliminate the majority, if not all, of trade sanctions imposed on Chinese products during 2018.

An air of caution is expected by investors however, after U.S. President Donald Trump recently concluded talks with North Korea, without any agreements reached. Following his meeting in Vietnam, Trump said that he was “never afraid to walk from a deal” and that he could do this with China too, if it wasn’t solved.

Switching back to Europe, with less than a month to go until the U.K. is expected to leave the European Union, all eyes remain transfixed on whether a departure – with or without a deal – will materialize by the March 29 deadline.

In the latest surrounding the topic, Irish Prime Minister Leo Varadkar has reportedly told colleagues in his cabinet, that a delay to June was “very likely”, according to Ireland’s Sunday Independent, who cited an unnamed minister.

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