BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks look set to open on a mixed note Monday after official data showed China's exports declined more than expected in September reflecting weak global growth and trade disputes with the U.S. administration.
In dollar terms, exports fell 3.2 percent year-on-year in the month, the General Administration of Customs said. This was bigger than the expected 3 percent decrease and prior month's 1 percent fall.
At the same time, imports decreased 8.5 percent annually versus the expected decline of 6 percent. As a result, the trade surplus increased to $39.65 billion from $34.83 billion a month ago.
Eurostat releases euro area industrial production for August later in the day. Economists expect output to drop 2.6 percent annually following a 2 percent fall in July.
Asian markets gained ground after the U.S. and China reached a 'phase one' trade deal last week and the U.S. agreed to hold off on tariff hikes planned for this week, providing a temporary reprieve for global markets.
As trade uncertainty weighs on economic activity, investors also remain hopeful that the Federal Reserve will cut interest rates later this month.
Earlier today, Singapore central bank loosened its monetary policy for the first time since 2016 and signaled more easing if prospects of inflation and growth weaken significantly.
The U.S. dollar held near a 2.5-month high against the yen while the pound slipped after two days of Brexit talks ended without a breakthrough.
Britain and the European Union said on Sunday a lot of work remains to be done to secure an agreement on Britain's departure from the bloc.
Oil prices steadied after rallying on Friday on reports an Iranian state-owned oil tanker had been attacked in the Red Sea. Investors also watched Turkey's incursion into Syria as the White House threatened to impose heavy sanctions on Ankara.
U.S. stocks rallied on Friday after President Trump said that the two economic super powers have reached a 'very substantial phase one deal' and agreed to delay planned tariff hikes. China, meanwhile, said it would increase purchases of U.S. agricultural products.
The agreement would take about three weeks to write and would likely be signed by both sides by the Asia-Pacific Economic Cooperation summit in Chile in November.
'Phase two will start almost immediately' after the first phase is signed, Trump said in an Oval Office meeting with China's lead negotiator, Vice Premier Liu He.
The Dow Jones Industrial Average surged 1.2 percent, the tech-heavy Nasdaq Composite climbed 1.3 percent and the S&P 500 added 1.1 percent.
European markets closed sharply higher on Friday as investors cheered positive signals around U.S.-China trade talks and an EU spokesperson described last-ditch talks with the U.K. as 'constructive.'
The pan European Stoxx 600 jumped 2.3 percent. The German DAX climbed 2.9 percent, France's CAC 40 index gained 1.7 percent and the U.K.'s FTSE 100 rose 0.8 percent.
Copyright RTT News/dpa-AFX