European stocks closed higher Wednesday after a report that China is willing to discuss a partial trade deal with the U.S.

The pan-European Stoxx 600 closed provisionally 0.4% higher, with trade-sensitive autos and technology stock baskets leading gains. All sectors except utilities and retail were in positive territory.

Bloomberg reported, citing an official with direct knowledge of negotiations, that China is willing to discuss a potential accord providing no more tariffs are imposed by President Donald Trump's administration, including duties scheduled this month and in December.

Markets worldwide suffered on Tuesday as the U.S. imposed visa restrictions on Chinese officials in response to the detention or abuse of Muslim minorities, having already blacklisted 28 Chinese companies over their alleged involvement in the treatment of ethnic Uighurs in Xinjiang province, angering Beijing.

The world's two largest economies are still set for high-level trade negotiations in Washington on Thursday in the hope of finding consensus to end their protracted trade war.

Tensions are also heightened due to a stand-off between Beijing and the U.S. National Basketball Association (NBA) following a tweet from Houston Rockets general manager Daryl Morey supporting pro-democracy protests in Hong Kong.

On Wall Street, markets rose on the back of the latest U.S.-China trade developments.