Europe open: Markets higher on Sino-US optimism and Brexit hopes

European stocks were higher on Tuesday morning amid renewed optimism over Sino-US trade relations and the chances of a Brexit deal.

At 0855 BST, the Stoxx 600 was 0.6% higher at 392.13, as Germany's Dax rose by 0.6% to 12,559.44 and the French CAC 40 climbed by 0.7% to 5,684.26. Meanwhile, London's FTSE 100 was 0.1% firmer at 7,221.48.

US President Donald Trump's claims that a "phase one" trade deal had been agreed with China were called into question on Monday as Bloomberg reported that delegates from Beijing wanted further discussions before putting pen to paper.

However, at least two closely-followed Chinese media outlets, the Global Times and Taoran Notes - a social media account affiliated with the official Economic Daily - were upbeat on proceedings as they agreed that the talks in Washington had achieved a breakthrough.

Rabobank analysts said: "Speculation remains that Presidents Trump and Xi are likely to sign a finalised deal at the Asia-Pacific Economic Cooperation summit in November, but that the tone between the two nations remains fragile."

In Brexit news, investors were optimistic after the EU's chief Brexit negotiator, Michel Barnier, said that reaching a deal this week was still a possibility.

Markets.com analyst Neil Wilson said: "There’s a chance of stringing this out longer as the EU could call a further meeting the week after. This could give some support to sterling for a while as hope lingers on.

"If a withdrawal text is agreed, the hurdle is a recalcitrant Parliament. No deal risks remain to the fore."

In individual stocks, recruiter Hays was among the top risers as its first-quarter results beat expectations, while French specialty chemicals company Arkema rose after saying it will increase polymer capacity by 50% at its Changshu plant following strong growth in the lithium-ion battery market for electric vehicles.

ASML was also in the green after reports that smartphone giant Samsung will agree to buy high-end lithography machines from the Dutch semiconductor equipment manufacturer.

Shares in Wirecard took a dive after the Financial Times reported that the German financial services provider had appeared to fraudulently inflate sales and profits from its operations in Dubai and Ireland.