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MILAN: European shares rose on Tuesday, led higher by gains in Bayer after a report that the US approved its takeover of Monsanto, while a solid update from LVMH lifted luxury sector stocks.
A speech by Chinese President Xi Jinping calmed investor jitters over an escalating US-China trade row, helping send the pan-European STOXX 600 benchmark up 0.7 per cent by 0716 GMT.
Xi promised to cut import tariffs on products including cars, buoying sentiment in the sector and lifting the auto index up 2 per cent with Daimler up 2.3 per cent.
Bayer rose 4.3 per cent and was among the top gainers after the Wall Street Journal reported that the US Justice Department will allow the German drugs and pesticides group to acquire Monsanto Co in a $62.5 billion deal.
LVMH rose 5 per cent to record highs after the Louis Vuitton owner posted better-than-expected sales growth in the first quarter, helped by thriving Chinese appetite for luxury goods.
Its solid update boosted shares in other luxury companies such as Kering, up 3.7 per cent.
Higher-than-expected quarterly revenues lifted TGS Nopec up 11.4 per cent to lead gainers on the STOXX.
Among other country benchmarks, the FTSE was up 0.5 per cent and the exporter-heavy DAX index surged 1.3 per cent.
