World stock markets rallied Monday as US and Chinese officials in Beijing geared up for crunch trade talks aimed at averting fresh tariff escalations that have triggered fears of a global economic slowdown.
European equities shrugged off last week's losses to chase Asia higher and Wall Street followed their lead as a new round of high-stakes talks gets under way to resolve the festering trade row.
US negotiators met with their Chinese counterparts for preliminary discussions in Beijing on Monday, buoying hopes of deal.
"European stocks have rallied... as traders are hopeful about the next round of trade talks between the US and China," said CMC Markets analyst David Madden.
"Given that both sides are still far apart, there is no guarantee that the discussions will be successful, and dealers' optimism might be wishful thinking."
Key Republican negotiator Richard Shelby said Sunday that "talks are stalled right now" on a deal to keep the government open by Friday's deadline, as negotiations continue to be defined by US President Donald