Market focus is largely attuned to global trade developments, after Trump confirmed talks between Washington and Beijing were still ongoing.
In an interview with Reuters on Tuesday, Trump also said he would intervene in the Justice Department's case against a top executive at Chinese telecoms giant Huawei if it would help serve national security interests or help U.S.-Sino trade talks.
Trump's comments on a potential deal with China also translated into gains in equity markets stateside, with the Dow Jones Industrial Average climbing more than 300 points at the open. Investor sentiment was also buoyed by a report that China is looking to increase access to its market for foreign companies, in a bid to improve U.S.-China trade relations.
Back in Europe, investors continued to monitor deepening political turmoil in the U.K. It comes amid an intensifying backlash against May's leadership while she tries to salvage her Brexit deal.
The threshold of support needed to trigger a confidence vote in the prime minister was reached Tuesday evening, according to Graham Brady, chairman of the Conservative Party's '1922 Committee', a group of influential backbench members of parliament (MPs).
The vote is scheduled to take place Wednesday evening between 6 p.m. and 8 p.m. London time.
Sterling initially fell into negative territory on the news, before jumping 1.4 percent higher to around 1.2659 against the U.S. dollar.