German stocks were moving higher on Friday after media reports suggested that Chinese authorities are getting ready to implement more extensive stimulus measures in a bid to support growth.
The upside, however, remained limited as U.S.-China talks enter a more serious phase with U.S. President Donald Trump scheduled to meet with Chinese Vice Premier Liu He, with the goal of reaching a trade deal ahead of a March 1 deadline.
The benchmark DAX was up 22 points or 0.19 percent at 11,445 in opening deals after closing up 0.2 percent the previous day.
The euro inched higher before a speech by European Central Bank President Mario Draghi.
Banks Commerzbank and Deutsche Bank were moving higher after Germany changed labour laws to lure financial institutions unsettled by Brexit to Frankfurt.
Utility RWE edged down slightly .The company expects to win EU antitrust approval for the purchase of the renewable energy assets of E.ON and Innogy.
Hospital operator Rhoen-Klinikum rose 0.7 percent after its fiscal 2018 net consolidated profit increased 39.5 percent from last year.
In economic news, Germany's economy stagnated in the final three months of the year, thus narrowly avoiding a technical recession, latest data from the Federal Statistical Office confirmed.
GDP was unchanged from the third quarter, when the economy shrank 0.2 percent. That was in line with the preliminary estimate released on February 14.
The Munich-based Ifo economic institute said its business climate index, based on a monthly survey of companies, declined to 98.5 this month, the lowest level since November 2014, from 99.1 last month.