The pan European STOXX 600 <.STOXX> had risen 0.5 percent by 0805 GMT, after closing in the red Friday when investors feared the trade dispute between the world's two biggest economy could turn for the worse.
"The chatter over the weekend appeared to suggest some optimism that some form of deal would likely be the probable outcome, though how long that could take to pan out remains a significant unknown, and as such further volatility seems likely", said CMC Markets' Michael Hewson.
The situation in Syria, after President Donald Trump warned of a "big price to pay" for dozens of people killed by poison gas in a rebel-held town, was not impacting confidence.
The fact that U.S. futures were pointing to Wall Street opening in positive territory was supporting European bourses, analysts said.
Financial stocks contributed the most to the rise with Deutsche Bank [DBKGn.DE] up 3.2 percent after it named a new CEO who said tough decisions would have to be made and the structure of its investment bank reviewed.
Another top mover was Portuguese energy and utility group EDP (>> Energias de Portugal), up 5.3 percent after a report French utility Engie was examining a possible bid.
Britain's Rolls-Royce rose 1.9 percent after it agreed to sell its Germany-based diesel parts maker L'Orange to U.S.-based engineering company Woodward Inc for 700 million euros (£609.86 million), as part of a plan to simplify its business.
Still on the front of mergers and acquisitions, Novartis rose 0.5 percent after announcing a $8.7 billion deal for AveXis, a move into gene therapy that gives the Swiss drugmaker a rare-disease treatment seen reaping billions in sales and bolsters its technology base.
Telecom Italia retreated 0.5 percent after proxy adviser Glass Lewis recommended investors back a proposal by activist fund Elliott to replace six board members and shake up the way top shareholder Vivendi runs the phone group.
Fresh U.S. sanctions on Russia had a strong impact on a number of corporations linked to allies of President Vladimir Putin.
En+ Group, which manages the assets of tycoon Oleg Deripaska, was down over 20 percent and said the sanctions were "highly likely" to materially affect its business and prospects in an adverse way.
Shares in Swiss pump maker's shares Sulzer
(Reporting by Julien Ponthus; Editing by Toby Chopra)
By Julien Ponthus
