European shares opened at their highest levels in more than two months, buoyed by signs that Iran and the US are negotiating an end to their conflict, easing concerns about inflation and a global economic slowdown, according to Reuters.

The pan-European STOXX 600 up 0.61 per cent at 628.93 points, as of 0712 GMT, trading just shy of a record high touched in late February, just before the Middle East war erupted.

Most sectors traded higher, led by banks with a 1.7pc jump, while regional airlines such as Lufthansa and Air France KLM gained 4.2pc and 9pc, respectively, as Brent crude prices slid 5pc to $98 a barrel.