BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open higher on Monday after China offered to raise penalties on intellectual property violations in an attempt to hammer out a partial trade deal with the United States.
China will also look into lowering the thresholds for criminal punishments for those who steal IP, according to guidelines issued by the government on Sunday.
Asian markets advanced, with Hong Kong stocks leading the surge after pro-democracy candidates gained control of at least 12 out of 18 district councils in local elections, deepening the challenge for Chief Executive Carrie Lam's government.
Hong Kong is a part of China 'no matter what happens', Chinese Foreign Minister Wang Yi said today after meeting with Japanese Prime Minister Shinzo Abe in Tokyo. On Saturday, Wang called the U.S. the 'biggest destabilizing element.'
On the trade front, U.S. President Trump's national security adviser Robert O'Brien said on Saturday that an initial trade agreement with China is still possible by the end of the year, but warned Washington would not turn a blind eye to what happens in Hong Kong.
Chinese President Xi Jinping said China wants to work toward a phase one agreement on the basis of mutual respect and equality but will fight back if necessary.
The next round of U.S. tariffs on Chinese goods is set to take effect on December 15th, potentially complicating efforts to reach an agreement.
Gold prices touched their lowest in a week on a firmer dollar while oil held near two-month highs on expectations of an extension to OPEC+ production cuts.
In economic releases, the ifo institute is set to release Germany's business confidence survey results later in the day, with economists expecting the business confidence index to rise to 95.0 in November from 94.6 in October.
U.S. stocks edged higher on Friday after President Trump said in an interview that a trade agreement with China is 'very close' but Beijing wants a deal more than he did.
The Dow Jones Industrial Average rose 0.4 percent, while the tech-heavy Nasdaq Composite and the S&P 500 inched up around 0.2 percent.
European markets gained ground on Friday as investors reacted positively to comments from U.S. President Donald Trump and Chinese Premier Xi Jinping about a trade deal between the two countries.
The pan European Stoxx 600 gained 0.4 percent. The German DAX and France's CAC 40 index both inched up around 0.2 percent while the U.K.'s FTSE 100 surged 1.2 percent.
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