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European shares fluctuate amid some trade deal optimism

European shares fluctuate amid some trade deal optimism

European stocks fluctuated in early trading on Monday, amid increased hopes for a trade deal between the United States and China, and Brexit developments later this week.

As of 08:19 GMT, the Euro STOXX 600 rose 0.01 percent to 398.02, France CAC 40 was 0.67 percent up at 5,722.15 and Germany’s DAX ascended 0.17 percent to 12,894.51.

In Britain, FTSE 100 descended 0.31 percent to 7,324.68, Food and beverage shares led the losses, falling 0.6 percent, while auto shares rose 0.9 percent.

Some optimism spread in markets at the beginning of the week after Chinese statements that they were close to ending some parts of the trade agreement with the United States.

U.S President Donald Trump has said he hopes to sign the deal with Chinese President Xi Jinping next month at a summit in Chile.

The office of the U.S. Trade Representative said that U.S. and Chinese officials are "nearing completion" of some parts of the trade agreement after high-level telephone discussions on Friday.

On the Brexit developments, the EU agreed last weekend to Britain's request to extend the Brexit deadline, but did not set a new departure date.

This gave Britain's divided Parliament time to decide on Prime Minister Boris Johnson's call for early elections.

Asian shares rose to three-month highs on Monday, where China’s CSI 300 index surged 0.76 percent to finish at 3,926.59, Japan’s Nikkei 225 index closed 0.30 percent up at 22,867.27, the highest level in a year and Australia’s S&P/ASX 200 rose 0.02 percent at 6,740.71.

In Hong Kong, the Hang Seng index surged 0.89 percent to reach 26,904.

Meanwhile, Spot price for yellow metal increased 0.22 percent at $1508.69 an ounce, while Brent crude oil and West Texas index slipped 0.92 and 0.49 percent respectively.

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