European shares inched higher in thin trading on Tuesday, with the benchmark Euro STOXX 600 hovering near an all-time high amid optimism about the US-China trade agreement.
Overall, flat performance dominated most sectors on European exchanges at the start of today's session, but oil and gas shares rose 0.2 percent.
Markets are largely focused on developments on the U.S.-China trade front, where optimism dominated investors after China announced it would cut tariffs on U.S. products from its side early next year.
As the U.S President Donald Trump also said that, the process of signing the trade deal is approaching.
On the trade front, investors are awaiting further developments on the phase one agreement between the world's two largest economies.
As China’s Treasury
Department said Monday that Beijing will cut import tariffs on more than 850
products, while U.S. Treasury Secretary Steven Mnuchin said last week that the
first phase of the trade deal would be signed in early January.