European stocks may open flat to slightly higher on Wednesday after U.S. President Donald Trump said that the interim trade deal negotiations were in the "final throes" of an agreement that would defuse the 16-month dispute with Beijing.
Asian markets traded higher even as data showed profits at China's industrial firms declined in annual terms for the third consecutive month in October.
Industrial profits fell an annual 9.9 percent in the month, marking the steepest fall in eight months after a 5.3 percent decline in September amid the fallout from the Sino-U.S. trade dispute.
Gold prices dipped as the dollar firmed up a little on trade deal hopes. Oil slipped on industry data showing an unexpected build in U.S. crude inventories.
Consumer confidence data from France is due later in the session, headlining a light day for the European economic news.
Across the Atlantic, trading activity may be light ahead of a holiday on Thursday. Traders will keep an eye on a slew of U.S. economic data, including reports on weekly jobless claims, durable goods orders, personal income and spending and pending home sales.
The Federal Reserve is also due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.
Overnight, U.S. stocks eked out modest gains to reach fresh record closing highs. The three major averages rose around 0.2 percent as optimism over U.S.-China trade talks offset disappointing consumer confidence and housing data.
European markets ended on a subdued note on Tuesday as investors awaited concrete signals on U.S.-China trade deal.
The pan-European Stoxx Europe 600 index eased 0.1 percent. The German DAX slipped 0.1 percent, while France's CAC 40 index and the U.K.'s FTSE 100 edged up 0.1 percent.