European stocks are likely to open higher on Tuesday after each of Wall Street's three major averages stuck new record highs overnight on signs of progress in U.S.-China trade talks.
Technology companies were among the prominent gainers on Wall Street after Beijing announced new guidelines for the protection of patents and copyrights.
Asian markets gave up early gains to turn mixed. China's Commerce Ministry said in a brief notice that Vice Premier Liu He spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin early Tuesday Beijing time and agreed to continue talks on the Phase 1 deal.
Safe-haven assets such as the Japanese yen, the Swiss franc and gold eased while oil prices held steady after closing higher on Monday in reaction to positive comments from the United States and China on the trade front. The British pound remained supported amid hopes of an end to a hung parliament.
Market research group Gfk is slated to release German consumer sentiment survey results for December later in the session. The forward-looking index is forecast to remain unchanged at 9.6.
Across the Atlantic, trading may be impacted by reaction to reports on new home sales and consumer confidence.
Overnight, U.S. stocks hit record highs as traders cheered news on the merger and acquisition front as well as reports suggesting that China and the United States were 'very close' to a phase one trade deal.
The Dow Jones Industrial Average rose 0.7 percent, the tech-heavy Nasdaq Composite surged 1.3 percent and the S&P 500 added 0.8 percent.
European markets advanced on Monday after U.S. national security adviser Robert O'Brien said an initial U.S.-China trade deal was still possible by the end of the year.
The pan European Stoxx 600 jumped 1 percent. The German DAX gained 0.6 percent, France's CAC 40 index rose half a percent and the U.K.'s FTSE 100 climbed 1 percent.