Global stocks are jumping after China says trade talks with the US will resume in October

• Stocks are rallying on Thursday after both China and the US said that trade talks would resume in October.
• The talks are later than initially planned, but traders will still be breathing a sigh of relief after last weekend's hikes in tariffs, which sent markets plunging.
• Elsewhere, the pound held steady after a huge round of debates over Brexit on Wednesday evening that might lead to a possible election in the UK.
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Stocks are rising on Thursday morning, as US-China trade talks are set to resume next month, after hikes in tariffs last weekend.

The talks are later than originally planned, however, the Chinese Commerce Ministry said that Vice Premier Liu He had spoken over the phone with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Traders, however, are still hedging their bets on whether a deal will actually be made.

"Despite the gains in riskier assets, global investors are not getting carried away by this surge in optimism on news that the US and China are set to hold trade talks next month," said Han Tan, market analyst at FXTM.

"After all, investors have been seasoned by the tumultuous developments thus far in the year-long US-China trade conflict," he added.

Here's a look at the markets as of 9:00 am on Thursday in London (4:00 am EST).

• US futures are set to rise, with the Dow up 0.7, the S&P 500 0.6% and the Nasdaq 0.8%.
• In Europe, the Dax rose on open 0.6% and Euro Stoxx 50 0.5%.
• Asia closed on the up as the Nikkei surged 2.3%, Shanghai Composite 1.0%, but the Hang Seng after Wednesday's massive gains, dropped by 0.6%.
• In commodities, gold is down 0.6%, while WTI crude oil is also down 0.6% as is Brent oil at 0.4%.

The trade war has been hammering both the US and Chinese economies, and the knock-on effects on global trade have been dire - Germany, in particular, has suffered as reports today that new factory orders were down in July, adding to the risk of an incoming recession.

The pound also held above the 1.22 mark against the US dollar, on the news that UK Members of Parliament pushed to block a no-deal Brexit on Wednesday evening, as new Prime Minister Boris Johnson faced his fourth successive defeat as leader.

Earlier this week the pound had fallen below 1.2 to the dollar, as the risk of a no-deal Brexit seemed much more likely.

"The Brexit path ahead could still invoke an election, which could raise the prospects of a no-deal Brexit again in the event that PM Johnson wins a clear majority," said Tan.

"Even the more market-friendly option of delaying Brexit would only serve to kick the can down the road, leaving the Brexit conundrum intact while keeping the Pound subdued. Prolonged uncertainties surrounding Brexit would only ensure that sterling remains susceptible to the UK's political risk," Tan added.