LONDON (Reuters) - World stocks staged a rally cautious on Monday as investors persist for some progress in US-China trade talks, while the dollar dipped after the latest rally on the back of strong US economic data.
The MSCI All-Country World Index, which tracks shares in 47 countries, up 0.2% at midday in London.
European stocks rose for a second consecutive session after reports that Washington and Beijing are already approaching the trade agreements. STOXX 600 index of pan-European was up 0.7% at 1200 GMT, led by mining companies trade-sensitive. (EC)
British FTSE100 index rose 0.85%, Germany's DAX rose 0.5%, and the French CAC40 index rose 0.4%.
A state-backed newspaper China reported that China and the United States "very close" to agreement early trading, adding to optimism from Friday, when the presidents of both countries reaffirmed their desire for a deal.
China said on Sunday it would seek to improve the protection of intellectual property rights, including raising the upper limit of compensation for infringement.
"China is prepared to look at intellectual property clearly the catalyst for a nice step higher, or return to the highest level earlier this month," said Michael Hewson, chief market analyst at CMC Markets in London.
Earlier in Asia, the MSCI index of Asia Pacific shares outside Japan soared 0.7%, after losing 0.4% last week.
Japan's Nikkei average rose 0.7%, while Australian shares rose 0.5% and Shanghai blue chips rose 0.3%.
E-Mini futures for the S & P 500 rose 0.2%.
On Saturday, US National Security Adviser Robert O'Brien said initial trade agreement with China is still possible by the end of this year, though he said Washington would not shut our eyes to what is happening in Hong Kong.
Comments add to concerns that China's crackdown on anti-government protests in Hong Kong could complicate the talks.
"A 'single phase' deal now priced into the market; there is not much upside to come out of it unless they announce something like rollback full of tariffs (but) that does not really seem possible," said Simona Gambarini, market economist at Capital Economics.
'DIRTY LEAST'
In currency markets, the dollar stabilized close to 10 days against the euro was hit after rallying on Friday when the US manufacturing survey beats forecasts, such as the European Union numbers disappointed.
Increased German business morale in November did not help the euro, which was trading 0.1% lower at $ 1.1014. The business climate index of the Munich-based Ifo rose to 95.0 in November from 94.7 in October. November read in line with the Reuters consensus forecast.
The index measures the dollar against a basket of currencies was flat.
European Central Bank President Christine Lagarde on Friday called on eurozone governments to strengthen domestic demand.
Federal Reserve Chairman Jerome Powell spoke on Monday and is expected to underline the stable outlook for the rate given the better economic numbers.
Spot gold was 0.34% lower at $ 1,457.13 per ounce.
Oil prices hold above $ 63 per barrel mark.
Brent crude oil futures were flat at $ 63.37, while US crude fell 0.1% to $ 57.72 per barrel.