Europe midday: German stocks lead the pack on US-China trade deal news

Stocks are bounding ahead across the Continent following reports that the US and China have agreed to begin rolling back previously-imposed trade tariffs as part of a phase one trade deal.

According to Chinese Commerce Ministry spokesman, Gao Feng, Washington and Beijing had agreed to begin unwinding their tariffs as trade talks progressed, adding that both sides should do so in a proportional and simultaneous fashion.

And as of 1259 GMT, financial markets were waiting for Washington's side of the story.

Against that backdrop, the pan-European Stoxx 600 was up 0.22% at 405.96, alongside an advance of 0.70% to 13,271.94 for the German Dax and a gain of 0.17% to 5,876.50 for the Fench Cac-40.

Italy's FTSE Mibtel meanwhile was higher by 0.61% to 23,517.23.

Meanwhile, front month Brent crude oil futures were adding 1.22% to $62.50 a barrel on the ICE and US equity futures were pointing to a moderately higher start to the trading day in New York.

In the corporate space, shares of Osram Licht AG were higher after Austrian suitor AMS sweetened its £3.9bn offer, proposing a a lower acceptance rate and concessions for Osram's unions.

Elsewhere, America's Tiffany&Co. offered to open up its books to LVMH if the French luxury goods maker raised its £11.31bn takeover offer.

Back on the economic front, Germany's Ministry of Finance reported a 0.6% month-on-month drop in industrial production for September (consensus: -03.%), with the shortfall partly made up by a small upward revision to figures for the prior month.