U.S.-China trade optimism lifts stocks, dollar shrugs

Positive noises from China on U.S. trade talks lifted European stocks on Thursday and snuffed out a modest rally in safe-haven assets that had dominated in Asia. Europe’s main bourses had initially stuttered but muscled 0.5% higher when China said it was in close communication with Washington and preparing to make progress in upcoming trade talks. U.S. President Donald Trump had also stoked hopes when he told reporters the two sides were having “good conversations” and that an agreement “could happen sooner than you think”. Investors top-sliced some of their European government bond holdings in response, as the third German resignation from the European Central Bank’s board in recent years overnight also amplified doubts around the sustainability its stimulus measures.