Europe midday: Stocks gain on trade hopes and US election headlines

Stocks in Europe are grinding higher overcoming earlier caution ahead of the US central bank's eagerly awaited annual economic symposium scheduled for the next day.

Joshua Mahony at IG credited optimism around US-China trade and some improved headlines around polling for US President, Donald Trump, for the improvement.

"Aside from fears of a second wave, the US election provides one of the main hurdles to overcome into the months ahead, yet the rise in market sentiment seems to have come hand-in-hand with the resurgence in support for Trump," said Mahony.

"Biden will have the left vote, but his ability to win over the undecided centre-ground voters could be the key determinant in settling this unpredictable election."

In the background meanwhile, soybean futures had climbed to a seven-month high with Bloomberg reporting that China was set to purchase record amounts this year.

As of 1233 BST, the benchmark Stoxx 600 had extended gains and was up 0.42% at 371.30, alongside a rise of 0.49% for the German Dax to 13,125.12, although the FTSE Mibtel was dipping 0.02% to 20,022.15.

Pacing the advance on the Stoxx 600 were Technology and Travel and Leisure names.

In parallel, euro/dollar was drifting lower by 0.25% to 1.1805 and front month Brent crude oil futures were off by 0.15% to $45.79 a barrel on the ICE.

Italy became the latest country to rule out country-wide lockdowns, with health minister, Roberto Speranza, highlighting in an interview with Bloomberg that the "situation is under control, with pressure on hospitals that is very low, minimal."

On the economic side of things, overnight, German authorities approved a further €10bn of expenditures to finance the extension of the country's 'Kurzarbeit' job subsidy scheme until the end of 2021.

Elsewhere, INSEE reported that its French consumer confidence index was relatively stable in August at a reading of 94, the same as in the month before.