MADRID (dpa-AFX) - European markets are surging higher on Wednesday with investors going on a buying spree amid rising optimism about a trade deal between the U.S. and China.
Encouraging data on eurozone industrial production is also aiding sentiment.
Hopes about the world's two largest economies agreeing on a deal have increased after U.S. President Donald Trump sounded confident about such a development when he spoke to Reuters.
Trump noted that trade talks between U.S. and Chinese officials were underway by telephone and suggested more meetings are likely. 'We'll probably have another meeting. And maybe a meeting of the top people on both sides,' Trump said. 'If it's necessary, I'll have another meeting with President Xi, who I like a lot and get along with very well.'
Trump has stated that he would not raise tariffs on Chinese imports until he was sure about a comprehensive trade agreement. Meanwhile, according to reports, China has cut tariffs on imports of cars made in the U.S. to 15% from the existing 40% levy.
Markets are also reacting positively to news about the Canadian court granting bail to Huawei Technologies Co.'s CFO, who was apprehended in Canada last week.
Meanwhile, investors are keenly following the developments on the Brexit front. The British Prime Minister Theresa May is facing a no-confidence motion on her leadership today.
According to BBC, Conservative MPs will vote between 6 PM GMT and 8 PM GMT. May has reportedly said that she will contest the no confidence vote with everything she has got. In the event of May managing to secure a majority, she will remain unchallenged for another year.
May had called off the Commons vote on her Brexit negotiations, after admitting she was heading for a heavy defeat.
Among major markets in Europe, Germany is up with its benchmark DAX gaining about 1.4%. France's CAC 40 is rising nearly 2.3%, while U.K.'s FTSE 100 is up 1.25%. Switzerland's main index SMI is up by about 1.6% and Italy's FTSE MIB is gaining 1.85%.
Sweden, Spain, Poland, Norway, Netherlands and Greece are all moving notably higher.
On the economic front, data from Eurostat showed Eurozone's industrial production grew in line with expectations, at 0.2% in October after a slump in the previous month. In September, industrial production declined 0.6% (revised from -3%).
On a year-on-year basis, industrial production grew 1.2% in October, following a 0.8% rise in September, which was revised from 0.9%. Economists were looking for 0.8% growth.
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