European stocks opened cautiously higher Thursday as markets digest conflicting messages on the possibility of a U.S.-China trade deal.

The pan-European Stoxx 600 nudged 0.2% higher at the opening bell, basic resources and banks both jumping more than 1%, while the food and beverages sector lost 0.6% in early deals.

President Donald Trump said Wednesday that a trade deal with Chinese President Xi Jinping was possible when the two meet this weekend at the G-20 summit in Osaka, but warned that he was prepared to impose tariffs on all remaining Chinese imports if talks fall through.

Source: CNBC