European shares rise to record high on US-China trade optimism

European shares hit a fresh intraday record high on Monday, building on last week's gains, as signs of easing trade tensions between the United States and China boosted risk appetite.

The continent-wide STOXX 600 index edged up 0.1% to 576.37 points, as of 0808 GMT, after closing at a record high on Friday.

U.S. President Donald Trump said the U.S. and China are set to "come away with" a trade deal, as he is expected to meet his Chinese counterpart later this week in South Korea where the pair will decide on the framework of a trade deal hashed out over the weekend.


European mining stocks and tech sector added 1.1% each, while the utilities index lost 0.6%.

The U.S. Federal Reserve is widely expected to cut interest rates by a quarter percentage point at its meeting on Wednesday, a view supported by a softer-than-expected inflation report on Friday. The European Central Bank is expected to hold rates steady later this week.

Among corporate updates, Swiss drugmaker Novartis said on Sunday it has agreed to acquire U.S. biotech firm Avidity Biosciences for about $12 billion in cash. Shares of Novartis were down 1%.

HSBC Holdings lost 1.3% after saying it will book a $1.1 billion provision in its third-quarter results after losing part of an appeal in a long-running lawsuit tied to Bernard Madoff's Ponzi scheme.