Commercial optimism reached the highest of 2 1/2 months

LONDON – Hope for progress in US-US trade talks and stimulus measures taken by central banks lifted world stocks to a new high on Monday, though European gains were held back by the US. worries about the prospects of automakers.

The all-country MSCI all-country index rose 0.4% after the Japanese Nikkei closed up 1.8% at its highest level of the year and the stock index Asians of MSCI increased by almost 1%. The Shanghai Blue Chips jumped 2.7%, reaching their highest level in more than six months.

Wall Street futures have suggested that US stocks will maintain last week's gains as trading resumes Tuesday after Monday's holiday.

The Dow Jones and Nasdaq were touted to have racked up eight weeks of consecutive gains on bets that the US and China could resolve to resolve their protracted trade dispute.

Negotiations will resume this week, with US President Donald Trump stating that he could extend the deadline of March 1 for an agreement. Both sides reported progress at talks last week in Beijing.

The mood was more moderate in Europe, where a pan-European stock market index reached its highest level in four months. Earnings were limited by automakers, who were affected by data showing Chinese car sales fell 16% in January, their seventh consecutive month of decline.

The automotive index, indicator of the European economy, fell 0.4%. The industry has also been overwhelmed by the fear that a US Department of Commerce report will lead to tariffs on imported cars and auto parts. German stocks fell by 0.1%.

"The optimism on trade has been strong, but the underlying economic data has been much weaker, so you have to take into account certain factors of sales and attraction incentives, said David Vickers, Senior Portfolio Manager at Russell Investments. The Flash PMI data to be released this week have been the focus of attention, he said.

"As the rebound of December lows fades … the fundamentals are reaffirming (themselves)," Vickers added.

Poor economic data fueled expectations that the world's most powerful central banks would implement stimulus policies and support markets.

The need for economic recovery has been highlighted by data showing a decline in Singapore's exports and a sharp decline in foreign orders for Japanese equipment.

INVESTMENT SLUGGISH

Beijing is already taking action, with Chinese banks issuing the largest number of new loans in January, with the aim of boosting unproductive investments.

The minutes of the Federal Reserve's latest monetary policy meeting is due to be released Wednesday and is expected to provide further guidance on the likelihood of a rate hike this year. There is also talk of the bank maintaining a much larger balance sheet than expected.

"Given the number of speakers supporting patience since the January meeting, the Fed's minutes should reiterate a broadly conciliatory message," TD Securities analysts said in a note.

The dollar remained stable against the yen at 110.58, after having pulled out of a peak of 111.12 in two months.

The pound sterling rose after three consecutive weeks of losses as investors waited for the outcome of the Brexit negotiations between Britain and the European Union.

British Prime Minister Theresa May plans to address all EU leaders and the President of the European Commission to demand changes to her EU withdrawal agreement after another defeat against her own legislator the week last.

That left the dollar a little lower at 96.731 against a basket of currencies and far from the peak of 97.368 last week.

In commodity markets, oil prices reached their highest level this year, driven by OPEC supply cuts and US sanctions on Iran and the United States. Venezuela.