European markets were higher Tuesday morning, after Chinese President Xi Jinping sought to soothe investor concerns about the prospect a full-scale trade war between the world's two biggest economies.
The pan-European Stoxx 600 was up around 0.6 percent during mid-morning deals, with most sectors and major bourses in positive territory.
Basic resources stocks — with their heavy exposure to China — led the gains, up more than 2.2 percent after comments from Beijing's premier. Speaking at the Boao Forum in China, Xi said the Asian giant would take measures to sharply widen market access for foreign investors, increase the foreign ownership limit in the country's autos sector and do more to protect the intellectual property of international firms.
Anglo American, ArcelorMittal and BHP Billiton were the top sectoral performers shortly after the opening bell, all trading over 2.5 percent higher.
Looking at individual stocks, shares of LVMH rose over 5 percent to reach new record highs shortly after the opening bell. The world's biggest luxury goods group advanced towards the top of the European benchmark after it posted stronger-than-anticipated sales growth in the first three months of 2018. The upbeat start to the calendar year was supported by a thriving Chinese appetite for luxury goods.
Meanwhile, fragrance and flavor maker Givaudan posted weaker-than-expected sales figures over the first quarter, despite a boost from new contract wins and acquisitions, Reuters reported. Its shares were over 3 percent lower on the earnings news.
Trade war fears ease
In Asia, equities bounced Tuesday after China's Xi vowed to lower import tariffs on products including cars. His comments prompted a swift and largely positive reaction in financial markets, which have been rattled over recent weeks amid an escalating trade dispute with the U.S.
MSCI's broadest index of Asia-Pacific shares excluding Japan recovered from early losses to surge 0.7 percent.
Oil markets also extended strong gains Tuesday, rising more than 1 percent after Xi's comments. Brent crude futures were at $69.54 at around 10:40 a.m. London time (5:40 a.m. ET), up 1.3 percent from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $64.21 a barrel, up 1.25 percent.
