German stocks advanced on Monday after a tabloid run by the ruling Communist Party's official People's Daily discounted "negative" media reports and said both countries were "very close" to a phase one trade deal.
Meanwhile, the headline German IFO Business Climate Index came in at 95.0 in November, up from 94.6 and meeting the consensus estimate of 95.0.
The benchmark DAX was up 63 points, or 0.48 percent, at 13,228 after closing 0.2 percent higher on Friday.
Linde edged up slightly after it signed a memorandum of understanding with Baowu Clean Energy Ltd to cooperate on research and development to develop China's hydrogen market for industrial and mobility applications.
QSC was up half a percent. The company said it has regained its growth course since the third quarter of 2019.
Real estate company TLG Immobilien added 0.6 percent. The company announced that the district court of Frankfurt/Main has dismissed the action brought by outside shareholders of WCM Beteiligungs- und Grundbesitz-Aktiengesellschaft concerning the control agreement.