World shares staged a cautious rally on Monday as investors held out for some progress in U.S.-China trade talks, while the dollar dipped after its latest rally on the back of strong U.S. economic data.
The MSCI All-Country World Index, which tracks shares across 47 countries, was up 0.2%.
European shares rose for the second straight session following reports that Washington and Beijing were nearing a trade agreement. The pan-European STOXX 600 index was up 0.7% at 0837 GMT, led by trade-sensitive miners. [.EU]
Britain’s FTSE100 index was up 0.7%, Germany’s DAX rose 0.5%, and France’s CAC40 index was up 0.6%.
A Chinese state-backed tabloid said on Monday China and the United States were “very close” to an initial trade agreement, adding to optimism from Friday, when the presidents of both the countries reiterated their desire for a deal.
China said on Sunday it would seek to improve protections for intellectual property rights, including raising the upper limits for compensation for rights infringements.
“China being prepared to look at intellectual property is obviously the catalyst for a nice move higher, or a return to the highs earlier this month,” said Michael Hewson, chief markets analyst at CMC Markets in London.
Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 0.7%, after losing 0.4% last week.
Japan’s Nikkei firmed 0.7%, while Australian stocks rose 0.5% and Shanghai blue chips 0.3%.
E-Mini futures for the S&P 500 added 0.2%. [.N]