European stock markets surged to a seven-week high on Monday as investors' appetite for risk increased on the back of productive trade talks between the US and China.

EU mid-market update: Too good to be true? Trade war and real wars pivot sharply to resolution; US reconciliation bill and CPI in focus this week.

The US and China will temporarily lower tariffs on each other’s products, in a move to cool trade tensions and give the world’s two largest economies three more months to resolve their differences.