Europe open: Dax hits record high

Stocks came out of the gate higher on Thursday, boosted by better-than-expected industrial production data out of Germany and news that a Chinese delegation would travel to Washington during the following weak to sign a preliminary trade deal with the US.

In the background however, investors were keeping a wary eye on the news-flow around Iran given the heightened risk of further strikes by Tehran or proxies acting in its name.

"The US and Iran are still at odds with each other, but as long as a conflict doesn't seem to be on the horizon, the feel good factor is likely to last," said David Madden, analyst at CMC Markets UK.

According to CNN, US Defence Secretary, Mark Esper, proxy groups for Iran may still carry out attacks "either directed or non-directed by Iran" and Washington would need to "sort through that, understand, who’s doing it, who’s motivating it."

Against that backdrop, as of 0900 GMT, the Dax was 1.4% stronger to 13,503.78 - a fresh all time high - alongside a 0.6% rise on the Cac-40 to 6,054.75.

In welcome news, according to the Federal Office of Statistics, industrial production in Germany sped ahead at a 1.1% month-on-month pace in November (consensus: 0.8%), boosted by a 2.4% jump in the output of capital goods.

Yet against the same month one year ago, production remained down by 2.6%, although that did mark an improvement on the 4.6% drop seen in October.

Shortly afterwards, Eurostat announced that the rate of unemployment within the single currency bloc in November was steady versus the month before at 7.5%, as expected.

Further afield, reports indicated that Chinese vice-premier, Liu He, would travel to the US on 13 January, with the signing of the so-called phase-one trade deal expected to take place on 15 January.