BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open higher on Monday as investors put trade issues on the back burner and cheered official data showing that China's factory activity returned to growth in November for the first time in seven months.
A private survey of Chinese factory activity in November released today also came in stronger than expected, offering a glimmer of hope that the world's second-largest economy may be able to hold in check its slide toward sub-6% growth.
Asian markets moved higher, though a U.S.-China trade deal remained elusive ahead of Dec. 15, when additional tariffs on Chinese exports to the U.S. are set to go into effect.
Axios reported Sunday, citing sources that the interim U.S.-China trade deal is now 'stalled because of Hong Kong legislation' and a 'phase one' agreement would only happen 'year-end at the earliest.'
Separately, China's Global Times reported that Beijing wants a rollback of tariffs in the phase one trade deal that the two economic powerhouses are aiming to reach.
Gold prices dipped on a firmer dollar while U.S. West Texas Intermediate crude oil futures jumped around 1.7 percent after plunging more than 5 percent on Friday.
Final factory Purchasing Managers' survey data from euro area and the U.K. are due later in the day, headlining a light day for the European economic news.
U.S. stocks ended a holiday-shortened session lower on Friday amid increased U.S.-China trade friction after Beijing said it would take strong counter-measures in response to the U.S. interference in China's internal affairs.
The Dow Jones Industrial Average and the S&P 500 dropped around 0.4 percent while the tech-heavy Nasdaq Composite shed half a percent.
European markets also fell on Friday after reports suggested that China is considering to put the drafters of the Hong Kong Human Rights and Democracy Act on its no-entry list.
The pan-European Stoxx Europe 600 index gave up 0.4 percent. The German DAX and France's CAC 40 index both edged down around 0.1 percent while the U.K.'s FTSE 100 declined 0.9 percent.
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