(Reuters) - European stocks on Friday extended gains from the previous session, helped by a surge in German real estate companies and on relief that trade tensions between the United States and China were easing.
The pan-European STOXX 600 index <.STOXX> rose 0.31% by 0715 GMT, after hitting near one-month highs on Thursday.
The real estate sector <.SX86P> sector jumped 1.71%, led by gains in shares of German real estate companies after a report that the rent freeze in Berlin could be less strict than previously planned.
Shares of Deutsche Wohnen <DWNG.DE>, Vonovia SE <VNAn.DE> and LEG Immobilien AG <LEGn.DE> rose between 3.6% and 10%.
Meanwhile, Italy's FTSE MIB <.FTMIB> was set to post its third straight session of gains, up 0.24%, as the country appears to be moving closer to ending a three-week political crisis with the collapse of one government and the arrival of another.
(Reporting by Amy Caren Daniel in Bengaluru; Editing by Arun Koyyur)
