Global stocks are rallying sharply Monday ahead of a busy week for markets in which investors are bracing for significant volatility.
With trade talks between Washington and Beijing kicking off Monday, as well as China's markets reopening after a week off, it is set to be a busy week for stocks.
"We could expect to see more volatility this week as China returns from its week-long celebration of the Lunar New Year on top of plenty of data to watch, including growth figures from Germany," Jasper Lawler, head of research at London Capital Group said in an email Monday morning, adding that the threat of a fresh US government shutdown further clouds the picture for equities.
"Funding for the US government runs out on Friday February 15. The collapse of talks over the weekend between US Democrats and Republican lawmakers have raised fears that another US government shutdown could be on us in days," he wrote.
Representatives from the Trump and Xi administrations began talks in Beijing on Monday, with the aim of making progress towards a trade deal of some form before the 90 day deadline imposed at the G20 in Argentina late in 2018.
Talks will initially be conducted between relatively junior officials, before Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer take over on Thursday and Friday.
Despite the hectic week ahead, investors seem calm Monday, with stocks in China jumping on their first day back after a break to celebrate Lunar New Year. European shares have followed suit, seeing substantial gains in the first hour of the week's trading. US stocks also look set to climb when markets open stateside later in the day.
Here's how things look just after 9.00 a.m. GMT (4.00 a.m. ET):
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