Europe open: Markets flat as Sino-US developments fail to inspire
European shares were flat on Monday morning with a weekend phone-call between senior trade figures from Beijing and Washington in focus.
At 0853 GMT, the Stoxx 600 was 0.1% higher at 406.33, as Germany's Dax remained flat at 13,238.60 and the French CAC 40 dropped by 0.1% to 5,931.28. London's FTSE 100 meanwhile edged 0.1% upward to 7,308.55.
Chinese Vice-premier Liu He shared a Saturday morning phone call with US Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer to discuss a potential trade deal, with the trio holding "constructive discussions" according to Beijing's commerce ministry.
Oanda analyst Craig Erlam said that though the news had led to renewed optimism, President Trump looks to have been a little premature in his assertion that a deal was done last month.
"This could well go on beyond the end of the year and even fall apart altogether which could be troublesome for the markets which have already invested so heavily into it," added Erlam.
Meanwhile, the People's Bank of China cut its repo rate for the first time in four years, leading to speculation that Beijing may launch new stimulus measures.
AxiTrader analyst Stephen Innes said: "It seems the PBoC is acknowledging the deterioration in the economy. While CPI is a concern, the focus should be on the PPI as the pork price issues are about sorting out supply, whereas the weakness in the PPI is screaming out for a rate cut.
"The PBoC was quick to respond to last week's horrible activity data suggesting policymakers could be increasingly responsive to economic data for the rest of the year."
Among individual stocks, Spanish stockmarket operator Bolsas y Mercados (BME) bounded higher after Swiss-based SIX Group lodged a bid at a 34% premium from BME's last closing price.
Stock in Qiagen also surged as the German genetics company said it was exploring the option of a sale.
Shares in Elekta continued to drop, with the Swedish radiation therapy specialist having begun working its way lower on Friday, when it warned on profits and reported that it had fallen short of second quarter earnings forecasts.