Europe midday: Markets gain on US-China trade hopes

European stocks were higher by midday on Thursday after US President Donald Trump said Washington and Beijing could be nearing a resolution to their long-running trade spat.

As of 1150 BST, the Stoxx 600 was 0.7% higher at 390.19 as the German Dax rose by 0.5% to 12,289.81 and France's CAC 40 climbed by 0.7% to 5,622.95. Meanwhile, London's FTSE 100 increased by 1.0% to 7,364.39.

Trump told reporters on Wednesday that a trade deal with China "could happen sooner than you think" as his administration secured a separate agreement with Japan that will open markets up to around $7bn worth of US agricultural products.

CMC Markets analyst David Madden said: "President Trump has a habit of changing his tune when it comes to China, so some traders might remain sceptical of the remarks. China’s ministry of commerce said companies have made significant purchases of US soybeans as well as pork, and this added to the bullish move."

In London, MPs appeared no closer to a Brexit resolution after a lively return to parliament as Prime Minister Boris Johnson accused his opponents of running scared from an election.

Among individual stocks, education publisher Pearson led the Stoxx 600 lower as it said adjusted operating profit will be at the bottom of its guidance range of £590m to £640m following weaker-than-expected trading in its US higher education courseware business in the key selling season.

Imperial Brands shares tumbled as the tobacco giant cut its annual revenue guidance amid challenges in the US vaping market and weakness in Africa, Asia and Australasia.

Dutch bank ABN Amro was also sharply lower after it confirmed it is under investigation for money laundering in the Netherlands, with prosecutors suggesting that the the bank failed to investigate or sever ties with suspect clients.

Demant fell after the Danish hearing aid manufacturer slashed its annual operating profit outlook and suspended a share buyback following a cyber attack that hit all of the company's major units at the beginning of September.