European stock markets rallied on Monday, driven higher by comments from President Donald Trump which helped to ease some fears over a potential refueling in trade tensions between the U.S. and China.

By 04:19 ET (08:19 GMT), the pan-European Stoxx 600 index had climbed by 0.4%, while the DAX in Germany rose by 0.4% and the FTSE 100 in the United Kingdom added 0.2%.

Following threats of new triple-digit levies on China last week which hammered global stocks, Trump seemingly moved over the weekend to calm jitters over a trade spat between the world’s two largest economies, saying that everything would be "fine" and that Washington was not looking to "hurt" China.

Beijing, meanwhile, backed its export curbs on rare earth elements and equipments as a necessary reaction to U.S. aggression, although it did not place new duties on U.S. items.

"This latest dispute could still blow over if cool heads prevail," analysts at Capital Economics argued in a note, adding that a planned meeting between Trump and Chinese counterpart Xi Jinping in South Korea later this month could provide "an off-ramp."

"But there is clearly a risk that both sides may dig in their heels, expecting their opponent to fold first. While China’s economy has proven more resilient in the face of U.S. tariffs than many had feared, there is still significant potential downside from a deeper rift with the U.S."

Analysts at Vital Knowledge also suggested that World Bank and International Monetary Fund gatherings this week may offer a "forum for unofficial talks to help lower the temperature" around international trade.

Yet gains in European equities were somewhat tempered by ongoing political upheaval in France. On Sunday, the French presidency unveiled the new cabinet of Prime Minister Sebastien Lecornu, who was reappointed only days after he resigned from the role in the wake of a widespread backlash to his previous cabinet picks.

Lecornu said his updated cabinet would reflect a focus on "renewal and diversity," although the names he has unveiled are mostly the same as before. Against this backdrop, the CAC 40 in France has jumped by 0.6%.

In individual stocks, AstraZeneca shares gained after Trump announced a deal whch will see the U.K.-based pharmaceutical giant offer medicines at a discount to a U.S. government healthcare program for low-income Americans in exchange for relief from tariffs.

PSI Software is also set to be purchased by private equity group Warburg Pincus in a more than 700 million euro deal, sending shares in the German company higher by more than 34%.

Greek night vision systems manufacturer Theon International has also announced plans to buy a 9.8% stake in French peer Exosens. Amsterdam-listed shares of Theon shares fell, while Exosens advanced by over 5%.