Fundamental Comment

European stocks trade higher on trade talk’s optimism

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European shares traded higher on Friday amid some optimism about trade talks, ahead of the awaited U.S. non-farm payrolls.

STOXX Europe 600 index added 0.27 percent to 385.66 points and Euro STOXX 50 gained 0.045 percent to 3,530.91.

Germany’s DAX 30 soared 0.37 percent to 12,736.83, French CAC 40 edged down 0.19 percent to 5,491.24.

U.K. FTSE 100 augmented 0.42 percent to 7,533.79.

“We are having very good conversations” with Chinese delegates, US treasury secretary Steven Mnuchin told reporters in Beijing this morning.

Meanwhile, there are some hopes that the U.S. and China could avoid a trade war as talks continue for the second day on Friday.

Later in the day, investors will keep their eyes on corporate earnings, as well as the high-relevance U.S. non-farm payrolls.

American employers probably created 190,000 jobs last month, while unemployment rate retreated to 4.0 percent from 4.1 percent, the NFP may.

Any upbeat data is likely to increase forecasts the Fed would hike interest rates in June and may consider four rate hikes this year, instead of three.

Data release today from the euro area showed a slight ease in expansion in the manufacturing and services PMI index to 55.1 in April from 55.2 in March.

The euro trade lower at $1.1962, while the British pound resumed its plunge for an eighth straight session to $1.3543.

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