(Reuters) – 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 <SIEGn.DE> gained 3.4%, and was the biggest boost to the STOXX 600, after the German industrial company’s fourth-quarter results beat estimates.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Amy Caren Daniel)