The United States and China eased trade tensions over the weekend and helped the European market climb to a near two-month high in early dealings on Monday, with Germany's trade-sensitive DAX leading market gains.
US and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs and reducing restrictions on tech company
Huawei in order to lessen hostilities with
Beijing.
The news helped shares in Asia gain overnight as investors piled into riskier assets, which took the shine off safe haven assets including gold and the yen.
The pan-European STOXX 600 index rose 1.3 per cent by 0706 GMT and Frankfurt's DAX rallied 1.6per cent.
The lighter restrictions on Huawei, as well as a report that US semiconductor equipment supplier
Applied Materials, will buy Japan's Kokusai Electric for about $2.3 billion, helped European chipmakers jump in early trading.
Infineon, Siltronic, Dialog Semi and
STMicroelectronics rose between 3 per cent and 6 per cent and pushed the technology sector to a one-year high.
Investors were also watching out for factory activity data from major European economies including Germany due later in the session, which follows disappointing reports out of Asia as the US-China trade spat put a strain on the sector.