After years of lagging behind, UK stocks are regaining favor among global investors, driven by a strong rally in the FTSE 100, regulatory reforms, and optimism over a UK-U.S. trade deal.

BofA Global Research on Friday raised its year-end target for the STOXX 600 index to 530 from 500 on resilience in global growth following a U.S.-China trade truce.

European equity markets recovered some ground after China indicated a willingness to engage in trade talks—provided the U.S. administration shows more respect and takes certain steps to improve relations.

Global stocks declined on Monday, while the dollar reached its highest level in 26 months, following a strong U.S. jobs report that left investors questioning whether interest rates will decrease at all this year, just as earnings season begins.

European stocks clawed back early losses to edge higher on Thursday, with gains in mining stocks offsetting declines in the retail sector.

European and US equity markets were expected to see a modest rebound on Monday following a selloff triggered by cooling US jobs data, which also pushed Asia’s benchmark stock index to a three-week low.

Europe's benchmark stock index lost over 1% on Thursday, led by losses in the technology sector, and was set to wipe out all gains from the previous session, mirroring the gloomy sentiment seen in Asian markets, News.az reports citing Reuters .