This week marks a big step forward in the US-China trade talks with teams expected to meet and hold in-person discussions starting Tuesday. However, markets remain less than optimistic about these round of talks making much progress towards both world leaders reaching a trade deal anytime soon.

On Monday, European stock markets are expected to open on a quieter note over this sentiment. White House Chief Economic Adviser Larry Kudlow expressed hope that the upcoming round of talks could bring about some progress until the stage before the talks had previously broken down.

In addition, global stock markets are expected to trade cautiously ahead of leading central bank meetings coming up this week, including that of the Bank of Japan, the Federal Reserve and the Bank of England.

At the time of writing, German DAX is trading at just above 12400.