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·       European stocks were slightly higher Wednesday afternoon, amid rising hopes the world's two largest economies could soon secure a trade deal to end a protracted dispute.

The pan-European Stoxx 600 closed provisionally up around 0.7 percent on Wednesday, with most sectors and major bourses in positive territory.

·       Asian shares pulled ahead to fresh 4-1/2-month highs and U.S. equity futures rose on a Reuters report that the United States and China have started to tackle the stickiest issues in their trade war.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, giving up some earlier gains after hitting a peak last seen in early October.

Investors have been cheered over recent days by signs of progress in Sino-U.S. trade talks. The trade war between the economic giants has roiled financial markets over the past year.

Sentiment also got a lift after the U.S. Federal Reserve on Wednesday affirmed it would be “patient” on further interest rate rises.

“We must be a little bit careful that if the trade negotiation would be ended with a temporary success, that could in turn mean the Fed might restart their monetary tightening,” said Yoshinori Shigemi, a global market strategist at JPMorgan Asset Management in Tokyo.

·       Japan’s Nikkei reversed course and ended higher as optimism over U.S.- China trade talks lifted companies which have large exposure to China such as Yaskawa Electric and Fanuc.

Reuters reported that top U.S. and Chinese trade officials are working this week to hash out language on six broad agreements that aim to resolve the most contentious issues in their seven-month trade war.

The Nikkei share average ended 0.2 percent higher to 21,464.23, after trading in negative territory for much of the day. It marked the fourth consecutive day of gains.

·       Chinese stocks surrendered gains to end lower on Thursday, as enthusiasm over progress in trade talks with the United States gave way to concern that Beijing will not resort to aggressive interest rate cuts to boost growth.

The Shanghai Composite index fell 0.34 percent to 2,751.80.  The blue-chip CSI300 index declined 0.27 percent, with its financial sector sub-index falling 0.35 percent.  The smaller Shenzhen index fell 0.27 percent while the start-up board ChiNext Composite index gained 0.3 percent

China’s central bank is not yet ready to cut benchmark interest rates to spur the slowing economy, despite cooling inflation and a stronger yuan, which have fanned market expectations of such a move, policy sources told Reuters.

The Reuters report follows comments from Chinese Premier Li Keqiang that China has not and will not change its prudent monetary policy and will not resort to “flood-like” stimulus.