[MILAN] European shares gained on Tuesday, recovering most of the previous session's losses, as optimistic comments from Washington and Beijing helped soothed investors' fears about the top two economies' intensifying trade spat.
Robert Griffiths, equity strategist at Credit Suisse, said he believed Trump would not be willing to risk the effect a second round of tariffs would have on the US economy, thus leaving scope for a de-escalation.Germany's trade-sensitive DAX and London-listed equities tacked on 1 per cent, while French stocks gained 1.5 per cent.Trade sensitive European auto and tech stocks bounced 2.2 per cent and 1.
Among auto stocks, Ferrari added 3.3 per cent, leading the sector index's rise. On the other hand, Renault tempered sector gains, falling 2.3 per cent. Unicredit shares fell 1.7 per cent, on a day when Italian banks' shares were pressured due to their holdings of the country's sovereign bonds.
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