Directs European shares to four-year highs in trade optimism in China

European shares hit a more than four-year high on Thursday after China said Beijing and Washington have agreed to cancel existing tariffs in different phases, adding fuel to a rally that is now spanning to its fifth straight day.

China and the United States must simultaneously cancel some existing tariffs on each other’s goods for both sides to reach a “phase one” trade deal, the Chinese commerce ministry said.

The pan-European STOXX 600 index (STOXX) rose 0.4% by 0813 GMT, with export-heavy Germany (GDAXI) outperforming with a 0.7% rise.

Among the top gainers across European sub-sectors were automakers (SXAP) and miners (SXPP), while defensive plays such as telecoms (SXKP) and utilities (SX6P) fell, suggesting higher risk appetite.

Siemens (DE:SIEGn) gained 3.4%, and was the biggest boost to the STOXX 600, after the German industrial company’s fourth-quarter results beat estimates.StockMarket

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