LIVE MARKETS-Stoxx at three-week high, volatility down

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STOXX AT THREE-WEEK HIGH, VOLATILITY DOWN

European stocks have seen a decent first hour of trading with the broad Stoxx 600 up 1.6%, at its highest since April 3, and Germany's Dax up 2.4% as the softer tone from the U.S. administration towards China and Fed chair Jerome Powell boosts the mood across regions.

The gains are pretty broad based. Tech .SX8P is the best performing sector, up 3.3%, but it's followed by mining, .SXPP up 3.3%, and luxury, .STXLUXP up 2.3%, so it's a bit of everything really.

The stand out performer is Germany's SAP SAPG.DE up 9% after its results beat expectations. That's a chunky move given the software firm is Europe's largest company by market capitalisation.

Another sign of the more positive mode is the euro stoxx volatility index is down at 23.6 its lowest since April 3. .V2TX

Defence firms are having a rare bad day. Rheinmetall, RHMG.DE Saab SAAB.ST and Leonardo LDOF.MI are all down 2-3%.

(Alun John)

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