Strong start for the European indices this morning

European stock indices will follow the example of their Asian colleagues and will launch a strong trading session today. The main reason for this is Wall Street's earnings and US President Donald Trump's comments, which signaled potential progress in his trade talks with China.

These markets, which some watch in connection with the ongoing US-China trade war, have inherited a seemingly positive development: Trump said on Thursday that he had "a long and very good talk" with Chinese President Xi Jinping on trade issues.

The president also said in his morning tweet that "trade talks are going well" and meetings are planned between the two leaders at the upcoming G20 summit. Shares in Europe are reacting well to these news, and major index futures are jumping.

Indicative opening prices:
UKX: 7,184 +60 points
DAX: 11,600 +116 points
CAC: 5,145 +53 points

Experts are trying to track the commercial "smoke signals" coming from the White House, but Rob Carnell, chief economist and head of research for Asia Pacific from ING, questioned the intentions of Trump's comments. He commented that "the timing of these words is too good a coincidence," given that the midterm elections in the US are a few days back.

It is unclear how much progress Trump and Xi have done to get out of the dead end. The talks between the two countries have recently stopped, as the White House is pushing for the cessation of the theft of intellectual property by Chinese companies and the reduction of the US trade deficit with China. So far, Beijing has not wanted to make big concessions.

Photo: pexels.com

Read more:

• US – Iran – Iraq tension remain the main driver of the stock market today
• How top market players on Wall St think 2020 will look like on financial markets
• Money Flow before the start of the new trading week
• Cincinnati Financial Corporation (CINF.US) -Opportunity for long positions
• Asia stocks gain as Fed signals no rate cuts in 2020