European stocks rise as fears of a trade war between China and US ebbed

EUROPEAN UNION (OBSERVATORY) –¬†European shares rose on Tuesday after Chinese President Xi Jinping promised to cut import duties, fueling optimism that a trade war between his country and the United States could be avoided.

The Stoxx 600 European index closed up 0.83 percent.

The index of shares of European automakers jumped nearly 1.9 percent after Shi promised to keep opening China’s economy and lower import duties on products including cars. Shares of BMW, Daimler and Volkswagen rose 1.9 percent, 1.2 percent and 4.5 percent respectively.

The core resources sector was the top gainer with a 2.7 percent gain, recovering from its heavy losses on Monday.

The oil and gas index closed up 1.77 percent as oil prices surged above $ 70 a barrel, its biggest one-day gain in nearly a month.

Mergers and acquisitions continued to move some stocks. Bayer rose 4.7 percent after the Wall Street Journal reported that the US Justice Department would allow the German drug and pesticide group to acquire Monsanto in a $ 62.5 billion deal after the two companies agreed to sell more assets for approval by antitrust authorities.

In Europe’s main bourses, Britain’s FTSE closed 1.0 percent higher at a six-week high, driven by gains in the energy and primary resources sectors.

Germany’s DAX <.DXI> was up 1.1 percent, while France’s CAC <.KAC> was up 0.84 percent.