European shares at record high on China plan to cut tariffs on some US imports

European shares rose to a record high on Thursday, helped by China's plan to cut tariffs on some US goods and a swathe of strong earnings.

The pan-European STOXX 600 index rose as much as 0.7 per cent to a record high of 426.700.

China said on Thursday it plans to halve tariffs on some US goods, which could help improve negotiating conditions for a second phase of a trade deal after the signing of a Phase 1 agreement between the two countries earlier this year.

The initial agreement had signalled no further escalation in a prolonged trade war which had severely hampered global economic growth.

In Europe, China-sensitive basic resources and automobile subindexes rose 1.8 per cent and 1 per cent, respectively.

France's third-biggest bank Societe Generale SA rose 0.5 per cent after reporting a stronger capital position in its fourth-quarter results.