German stocks advanced on Thursday as investors cheered progress on the U.S.-China trade deal and the latest monetary policy move by the Chinese central bank to support the slowing economy.
In what could be a major milestone in a bilateral trade war, U.S. President Donald Trump announced that the phase one trade deal with China will be signed during a White House ceremony on January 15th, and that he would later travel to Beijing to begin negotiations on the next phase.
The People's Bank of China said it would cut banks'reserve requirement ratio by 50 basis points on Jan. 6, a move that frees up more money for banks to lend to small businesses.
The benchmark DAX was up 53 points, or 0.4 percent, at 13,302 as trading resumed after the New Year's Day holiday.
The euro held steady against its major rivals ahead of regional PMI surveys due later in the day.
Final factory PMI results are due from France and Germany, at 3.50 am and 3.55 am ET, respectively. At 4.00 am ET, Eurozone final manufacturing PMI data is due.