European bourses tracked moderately higher midday Thursday after media reports that Beijing and Washington have agreed that Iran cannot have nuclear weapons or control over the Strait of Hormuz, and that China may buy more oil from the US.
US President Donald Trump has been meeting with China leader Xi Jinping in Beijing, seeking cooperation to settle Persian Gulf hostilities, as well as address trade issues.
Tech stocks led broad gains on continental trading floors.
Investors also eyed Wall Street futures in the green amid mixed closes overnight on Asian exchanges, although Seoul's KOSPI index rose 1.8% to close at a fresh record high.
The pan-continental Stoxx Europe 600 Index was up 0.6% mid-session.
The Stoxx Europe 600 Technology Index was up 1.3%, and the Stoxx 600 Banks Index gained 0.9%.
The Stoxx Europe 600 Oil and Gas Index gained 0.3%, while the Stoxx 600 Europe Food and Beverage Index edged 0.6% higher.
The REITE, a European REIT index, gained 0.1%.
On the national market indexes, Germany's DAX was up 1.4%, and the FTSE 100 in London advanced 0.5%. The CAC 40 in Paris was up 0.8%, and Spain's IBEX 35 lifted 0.9%.
Yields on benchmark 10-year German bonds were lower, near 3.1%.
Front-month North Sea Brent crude-oil futures traded evenly at $105.59 a barrel.
The Euro Stoxx 50 volatility index was down 4.2% at 20.97, but still indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.