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.

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.

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.