Picture used for illustrative purpose. File
Renewed optimism over a US-China trade deal and a smaller-than-expected decline in German economic output fuelled a rally in European stocks on Tuesday, with Frankfurt shares hitting a 1-month high.
The pan-European STOXX 600 index rose 0.8% by 0711 GMT, extending this week's gains on the back of positive updates on COVID-19 treatment efforts.
Lifting sentiment, top US and Chinese trade officials reaffirmed their commitment to the Phase 1 trade deal despite diplomatic rifts between the two countries.
The trade-sensitive German DAX rose 1%, helped by data showing Europe's largest economy contracted by a record 9.7% in the second quarter, but marked a minor upward revision from an earlier estimate of -10.1%.
All eyes will be on the Ifo institute's business climate index for August, due to be released at 0800 GMT.
Among individual stocks, technology company Aveva Group rose 3.2% after announcing a deal to buy OSIsoft, a privately held maker of industrial software, for an enterprise value of $5 billion.
LVMH gained 1.1% after a source told Reuters the French luxury goods giant and U.S. jewellery chain Tiffany will give themselves another three months to complete their $16.2 billion tie-up.
The pan-European STOXX 600 index fell 1.9%, on track for its biggest one-day drop in a month, pushing it to a weekly loss for the first time in four weeks.
London's benchmark FTSE 100 index of major blue-chip companies rose 0.3 per cent to 6,225.61 points compared with the closing level on Wednesday.
European stocks struggled for direction on Tuesday, with banking shares declining ahead of the US and UK central bank meetings this week.
The UAE non-oil trade volume could grow by up to 12.9% year-over-year in 2021, supported by an expected uptick in maritime transport activity and other positive global economic trends,
Dubai Electricity and Water Authority (Dewa) has completed 87.73 per cent of its project to extend its water transmission network by 36 kilometres across Dubai, at a total cost of about Dhs256 million.
The State Bank of Pakistan (SBP) has announced its bi-monthly monetary policy on Friday and decided to maintain its policy rate at 7 per cent, according to a statement issued by the bank.