Trade talk optimism pushes markets higher

European shares rose on Friday breaching a five-month high hit a day earlier as investors cheered positive signals over U.S.-China trade talks and after UK lawmakers voted to delay a potentially chaotic exit from the European Union.

The pan-European STOXX 600 was up 0.1 percent at 0826 GMT, piercing the 5 October high set on Thursday and on track for its biggest weekly gain in a month.

All the major bourses were in positive territory, although London’s FTSE 100 outperformed the pack, lifted by its heavyweight oil and mining stocks on higher metals and crude prices. Trade-sensitive DAX was up 0.1 percent.

The mood was also boosted by growing expectations that Britain will not leave the European Union without a deal on March 29 following Thursday night’s parliamentary vote.

Technology stocks were the biggest gainers, up 0.6 percent, after better-thanexpected results from U.S. chipmaker Broadcom overnight and boosted by hopes that Washington and Beijing will resolve their trade spat that has rattled financial markets.

Chinese Vice Premier Liu He spoke by telephone with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, with the two sides making further substantive progress on trade talks, Xinhua news agency said on Friday.

The prospect of the trade talks taking longer than expected tempered some of the gains, and there was still no clarity on how close the two economic powers are on reaching an agreement.

Asian stocks advanced as sentiment improved on a report that U.S.-China trade talks were making progress and after UK lawmakers voted to delay a potentially chaotic exit from the European Union. MSCI broadest index of AsiaPacific shares outside Japan gained 0.55 percent. The Shanghai Composite Index added 0.7 percent and Japan’s Nikkei climbed 0.8 percent.