German stocks rose on Friday as investors monitored headlines on U.S.-China trade talks.
Ahead of next week's high level meetings, U.S. Treasury Secretary Steven Mnuchin said the United States and China were "making a lot of progress" in talks and he looked forward to discussions with Chinese Vice Premier Liu He.
U.S. Commerce Secretary Wilbur Ross painted a relatively downbeat picture of the U.S.-China trade deal talks, but added there is a fair chance they will get a deal.
The benchmark DAX was up 136 points or 1.22 percent at 11,266 in opening deals after rising half a percent the previous day.
A weaker euro helped lift automakers, with BMW, Daimler and Volkswagen rising between 1.4 percent and 3 percent.
Lender Deutsche Bank was up nearly 2 percent and rival Commerzbank gained half a percent.
In economic releases, the headline German ifo business climate index dipped to 99.1 in January from 101.0 in the previous month.