Europe rallies to 4-month highs on US-China trade talks

European stocks rallied on Monday to four-week highs, marking two gains in a row as optimism improved in the market on US-China trade talks. 

Dow Jones Stoxx Europe 600 rose 0.1%, marking October highs, while closing Friday 1.4% higher. 

The index rose 3% last week, the largest profit since November. 

Optimism is rising for US-China trade talks, with both Chinese and US Presidents praising progress in negotiations. 

President Trump said he'd be happy to cancel tariffs if a deal is reached with China, adding his administration is nearer that goal than ever. 

Chinese President Xi Jinping also said the talks will carry on in Washington this week, hoping for an agreement soon before the truce deadline in early March. 

On Wall Street, Standard and Poor's 500 futures rose 0.1%, after rising 1.1% on Friday. 

The Euro Stoxx 50 rose 0.1%, while France's CAC40 added 0.2%, as Germany's DAX shed 0.1%.