Instability in Venezuela has fuelled concerns about supplies from the major crude producer, which has helped lift oil prices (Luis ROBAYO )

London (AFP) – World stocks rose Friday, putting them on course to end a shaky week on a positive note as investors looked ahead to crucial trade talks between China and the United States at the end of the month.

Small signs of a break in the impasse on Capitol Hill also provided some hope, with Democrats and Republicans meeting to end the month-long government shutdown that is taking its toll on the economy and has left hundreds of thousands of workers unpaid.

Asian and European equities barrelled higher despite an underwhelming performance overnight in New York, despite stubborn jitters over Brexit.

Eurozone stocks had also held firm on Thursday after the European Central Bank said it wasn’t out of tools to face what it acknowledged are growing risks to growth.

“Markets have effectively paused this week after the strong four weeks that preceded it,” Oanda analyst Craig Erlam told AFP on Friday.

“There’s been little sign of confidence being shaken.

“There’s likely to be a lot more catalysts next week  — Brexit, US government shutdown, trade talks, earnings — so confidence will be tested,” he added.

Wall Street provided a mixed lead, though the technology sector was supported by strong earnings from US semiconductor firms such as Texas Instruments, while energy firms tracked healthy gains in oil prices.

There are hopes that next week’s meeting in Washington between top Chinese and US officials will see some progress, but Commerce Secretary Wilbur Ross looked to temper expectations Thursday by saying the two sides are “miles and miles” from resolving their trade war.

However, he still offered some hope, saying: “I believe China would like to make a deal. I believe we would like to make a deal but it has to be a deal that works for both parties.

“I’m trying to say people shouldn’t think the events of next week will be the solution to all of the issues between the United States and China.”

– ‘We’re talking, we’re talking’ –

In Washington, two bills to end the shutdown were thrown out by the senate but the president signalled he could back a “reasonable” proposal that includes border security. However, Democrats reasserted they will not fund a Mexican border wall.

The Senate leaders of both parties met Thursday to discuss the issue, with Democrat Chuck Schumer later seen smiling and saying: “We’re talking, we’re talking”.

Oil prices rose as instability in Venezuela fuelled concerns about supplies from the major producer, with Trump weighing sanctions on Nicolas Maduro’s regime and backing opposition leader Juan Guaido as the country’s interim president.

– Key figures around 1050 GMT –

London – FTSE 100: UP 0.3 percent at 6,839.49 points

Frankfurt – DAX 30: UP 1.2 percent at 11,261.84

Paris – CAC 40: UP 0.8 percent at 4,909.63

EURO STOXX 50: UP 0.8 percent at 3,151.65

Tokyo – Nikkei 225: UP 1.0 percent at 20,773.56 (close)

Hong Kong – Hang Seng: UP 1.7 percent at 27,569.19 (close)

Shanghai – Composite: UP 0.4 percent at 2,601.72 (close)

New York – DOW: DOWN 0.1 percent at 24,553.24 (close)

Euro/dollar: UP at $1.1330 from $1.1304 at 2200 GMT Thursday

Pound/dollar: UP at $1.3083 from $1.3066

Dollar/yen: UP at 109.80 yen from 109.64

Oil – Brent Crude: UP five cents at $61.14 per barrel

Oil – West Texas Intermediate: UP 28 cents at $53.41 

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