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The world stocks rose as the fresh US and Chinese tariffs on reciprocal imports were less harsh than feared continued on Thursday.
Although the investors remained wary about the next steps in the US-Sino trade war, the pan-European benchmark rose 0.3 per cent, while Japan's Nikkei ended little changed.
An MSCI index tracking shares in 47 countries rose 0.2 per cent, supported by gains in Europe and Asia, but Chinese equities dipped after a rally on bets of government stimulus to limit the economic damage of new trade barriers, reports Reuters.
Markets were also watching a European Union summit where Prime Minister Theresa May appealed to fellow EU leaders on Wednesday to drop Brexit demands that she said could rip Britain apart.
After a knee-jerk negative reaction to the new tariffs announced by Washington and Beijing on Tuesday, markets have been speculating that an immediate escalation could be averted.
Meanwhile, S&P 500 E-mini futures ESc1 were little changed following strong gains on Wall Street on Wednesday.
The rally in global stocks has been accompanied a drop in demand for safe-haven assets, boosting US bonds yields and sending the dollar to seven-week lows.
The Japanese yen has also been under pressure.
The yield on benchmark 10-year Treasury notes, which on Wednesday touched its highest level since May 18, eased back to 3.0682 per cent on Thursday.
The dollar index, which tracks the dollar against a basket of six major rivals, dipped 0.18 per cent at 94.371.
The dollar was 0.04 per cent lower against the yen at 112.25, while the euro was 0.26 per cent stronger against the greenback at $1.1700.
The pound rose 0.3 per cent to $1.3188 GBP=D3 versus the dollar, helped by growing confidence that a Brexit trade deal can be clinched in the coming months.
In commodities, benchmark Brent crude rose 0.11 per cent at $79.49.
Base metals also rose, buoyed by relief over trade and a shortage of the metal in top consumer China, with London Metal Exchange zinc hitting its fortnight before paring some gains and trade up 0.50 per cent at $2,446 a tonne.