European stocks rose on Wednesday amid renewed optimism about US-China trade tensions.
Investors, who are awaiting a key speech on Thursday from US Federal Reserve chair Jerome Powell, have been buoyed by discussions between officials from both countries.
A phone call involving Chinese Vice Premier Liu He and Treasury secretary Steve Mnuchin saw both countries renew their commitment to a trade deal on Tuesday.
“Given the choppiness seen so far this week, we’re not expecting to see significant moves one way or the other,” said Michael Hewson, the chief market analyst at CMC Markets UK.
“The main drivers remain on US-China trade relations and on tomorrow’s central bank symposium,” he said, referring to Thursday’s Jackson Hole meeting, during which Powell is expected to give details on the Federal Reserve’s framework review.
Stocks in Asia declined on Wednesday despite the easing of trade tensions.
Futures were also pointing to a flat open for stocks in the US.
Futures on the Nasdaq (NQ=F), which also closed at a record high on Tuesday due to surging shares among tech giants such as Facebook (FB), Alphabet (GOOG, GOOGL) and Amazon (AMZN), rose by around 0.3%.