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European shares add to gains as trade war fears fade

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European shares add to gains as trade war fears fade
FILE PHOTO: Trader Matthias Praeger speaks on a phone in front of the German share price index DAX board at the stock exchange in Frankfurt, Germany January 7, 2016. REUTERS/Kai Pfaffenbach   -   Copyright  Kai Pfaffenbach(Reuters)
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LONDON (Reuters) – European shares extended their rally on Thursday as U.S.-China trade war fears were set aside and investors focused on bullish macroeconomic and corporate news.

At 0722 GMT, the pan-European STOXX 600 <.STOXX> was up 0.2 percent while the leading euro zone stock index <.STOXX50E> was on track for its ninth straight session of gains, up 0.25 percent.

On the corporate front a $3.2 billion share buyback programme from mining company Rio Tinto <RIO.L> boosted the shares up around 1.8 percent.

Inmarsat <ISA.L> shares climbed 3.5 percent after the British satellite company said it would collaborate with Japan’s Panasonic Avionics to provide in-flight broadband for commercial airlines.

Lower levels of market volatility, meanwhile, hurt quarterly revenue at trading platform IG Group <IGG.L>, sending the stock down 5.5 percent.

On the small-cap front, German fashion retailer Tom Tailor <TTIGn.DE> issued a profit warning sending its shares down 13.6 percent.

Safestyle <SFES.L> fell 3.1 percent after the window and door retailer and installer warned on profits and said it does not anticipate an “immediate recovery” back to 2016 and 2017 levels of financial performance.

The company’s poor performance adds to indications Britons are withholding spending on big-ticket home improvement products in an uncertain environment.

(Reporting by Helen Reid, Editing by Angus MacSwan)

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