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China stimulus boosts European shares, autos rally after Peugeot results

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STAFF(Reuters)
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European shares bounced on Tuesday after China signalled more stimulus measures to soften the blow from an ongoing tariff war with the United States, triggering relief in trade-sensitive tech, mining, and car stocks as some results also impressed.

The pan-European STOXX 600 <.STOXX> was up 0.6 percent by 0829 GMT, with the trade-sensitive DAX <.GDAXI> up 0.8 percent and the FTSE 100 <.FTSE> rising 0.5 percent.

Sectors reliant on trade and exports to China, like tech, industrials, basic resources, and autos, were the top gainers.

The autos sector <.SXAP> jumped 2.2 percent to its highest since Dec. 5 on the stimulus news and after a strong update from Peugeot maker PSA Group soothed investors' concerns about carmakers facing slowing demand in China.

Shares in the carmaker climbed 2.3 percent to their highest since mid-November after reporting record sales for 2018.

Staffing company Hays also shone after strong results which showed an 8 percent rise in quarterly net fees, boosted by strong hiring in Germany, its biggest market.

M&A was a driver with Swedish telecoms company Millicom up 4.7 percent after a bid from Liberty Latin America .

Kinnevik , the majority stakeholder in Millicom, rose 4 percent among top STOXX gainers.

On the negative side, UK bookmakers Paddy Power Betfair , William Hill , GVC Holdings and 888 Holdings <888.L> fell 1.7 to 3.2 percent after the U.S. Justice Department published an opinion which could further restrict online gambling.

Chocolate maker Lindt & Spruengli fell 3.1 percent after reporting sales rose 5.1 percent in 2018, in line with its "around 5 percent" goal, but highlighted the market environment remained "very challenging".

And among mid-caps, shares in sub-prime lender Provident Financial plunged 20 percent after it issued a profit warning, citing higher impairments at its credit card business Vanquis Bank.