European Stocks Swing on Fading Rate-Cut Hopes, US-China Talks

European stocks swung between narrow gains and losses on Thursday afternoon, with sentiment veering between a dimmer outlook for monetary policy easing and optimism around US-China trade talks.

The Stoxx Europe 600 Index fell as much as 0.3% before closing 0.2% higher, as US President Donald Trump and Chinese President Xi Jinping agreed to further trade talks. Meanwhile, the European Central Bank signaled it was nearing the end of interest-rate cuts. Markets pared bets on further reductions, boosting the euro.