European Shares Edge Higher Amid US-China Trade Hopes

European shares edged higher on Friday, buoyed by investor optimism over potential de-escalation in the ongoing trade war between the U.S. and China. As discussions between these economic giants loom over the weekend, market sentiment brightened, leading to an uptick in major European stock indices.

The pan-European STOXX 600 index climbed 0.3%, bolstered by a significant 0.7% rise in Germany's DAX index. Notably, the energy and basic resources sectors were standout performers, posting gains of 1.8% and 1%, respectively. U.S. President Donald Trump signaled that hefty tariffs on Chinese imports might ease as diplomatic negotiations are set to commence in Switzerland.

In another development, positive corporate earnings reports contributed to market gains. Commerzbank shares rose after a surprise profit report, while Sonova and Bavarian Nordic's stocks surged following positive financial forecasts and revenue beats. As the global trade narrative evolves, central banks, including the U.S. Federal Reserve and the Bank of England, adjust their policies to navigate the economic landscape.

(With inputs from agencies.)