European Stocks Rise With Cyclicals on U.S.-China Trade Progress

European equities surged, led by sectors that are more sensitive to the economic cycle, boosted by renewed optimism that the U.S. and China are inching closer to a trade deal.

The Stoxx Europe 600 Index gained as much as 1.1%, with miners, tech and banks pacing the advance. ASML Holding NV gained 2.7%, SAP SE rose 1.7% and Glencore Plc added 1.8%. U.S. stock index futures also gained.

Bloomberg News reported that China and the U.S. are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal. European equities have enjoyed a powerful rally this year, rising 21% through the end of November, on bets that trade talks will lead to a deal and global growth won’t falter. The gains took a pause in December.