European stocks traded higher Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on additional tariffs in a bid to reignite trade talks.

The pan-European Stoxx 600 closed 0.9% in afternoon trade at 387.87, slightly cutting its early surge after weak euro zone PMI data. Technology stocks led gains, up nearly 2% having hit a 1-year high earlier in the session. Food and beverages was the only sector trading in the red.

Following a meeting on the sidelines of the Group of Twenty (G-20) summit over the weekend, President Trump and President Xi confirmed that they do not intend to levy any new tariffs against each other’s products at present, while Trump suggested a reversal of his administration’s decision to ban American companies from selling products to Chinese telecommunications giant Huawei.

Source : CNBC