Barclays and Deutsche Bank shares close at decade highs on trade deal optimism

European stock markets rose on the last trading day of the week on signs of improving trade relationships between the U.S. and China.

The Stoxx Europe 600 index provisionally closed up 1.1%. Regionally, the U.K.’s FTSE 100 rose 0.7% while Germany’s DAX and France’s CAC 40 were up by 1.5% and 1.8%, respectively.

European auto stocks were among the biggest gainers, but shares of Barclays and Deutsche Bank also hit decade highs.

European bank stocks are rallying on a string of positive news, including relatively lower risk of war in the Middle East and signs of improving trade relationships between the U.S. and China.

Barclays shares have risen to their highest level in 15 years. The stock last traded at the current level in April 2010, in the aftermath of the financial crisis.

Yet, analysts at Bank of America suggest the stock is “cheapest” among the lender’s peers due to its strong earnings.

In its first quarter, the lender reported £2.7 billion ($3.71 billion) in net underlying profit.

“Barclays printed a strong set of Q1 numbers, largely driven by [investment banking] revenues,” said BofA’s analysts in a note to clients in May.