US markets positive ahead of trade talks

U.S. stocks gained as investors turned positive on the outlook for trade ahead of a meeting between the American and Chinese presidents.

The pan-European STOXX 600 ended the session down 0.3 percent and on a 1.2 percent loss over the month after a disappointing earnings season. Germany's DAX, the most sensitive to China due to its big exporters, fell 0.4 percent. German blue chip companies posted their fourth straight month of losses, with a 1.6 percent dip in November, the longest losing streak since 2008.

The European index shed 0.92 percent for the week. Autos and basic resources fell the most as investors focused on the upcoming trade talks at the G-20 summit, in Buenos Aires. Investors are paying special attention to a meeting between President Donald Trump and China's President Xi Jinping.

Crude capped its biggest monthly slump in a decade. Emerging-market equities slipped, though Chinese stocks advanced even as data showed the economy remains in a rough patch. The euro weakened with the region’s shares after data showed inflation easing in the region.

Any sign of a trade truce could tame the greenback’s gains and boost riskier assets including emerging-market currencies and stocks. Trump on Thursday gave conflicting signals on his expectations for reaching a deal with Xi this weekend, as officials work on the contours of an accord that may delay ramping up tariffs on the Asian country in January. Goldman Sachs, however, said an escalation of tensions is the most likely outcome.

China reported its weakest factory growth in more than two years on Friday, reigniting fears about growth ahead of crucial trade talks.

Past the G20 meeting, traders are looking to the following weekend’s gathering of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers, where Saudi Arabia and others are expected to cut output in a bid to support prices.