European shares led higher by Bayer, luxury stocks

MILAN (Reuters) – European shares rose on Tuesday, led higher by gains in Bayer after a report that the U.S. approved its takeover of Monsanto, while a solid update from LVMH lifted luxury sector stocks.

The German share price index, DAX board, is seen at the stock exchange in Frankfurt, Germany, March 21, 2018. REUTERS/Tilman Blasshofer

A speech by Chinese President Xi Jinping calmed investor jitters over an escalating U.S.-China trade row, helping send the pan-European STOXX 600 benchmark up 0.7 percent by 0716 GMT.

Xi promised to cut import tariffs on products including cars, buoying sentiment in the sector and lifting the auto index .SXAP up 2 percent with Daimler (DAIGn.DE) up 2.3 percent.

Bayer (BAYGn.DE) rose 4.3 percent and was among the top gainers after the Wall Street Journal reported that the U.S. Justice Department will allow the German drugs and pesticides group to acquire Monsanto Co (MON.N) in a $62.5 billion deal.

    LVMH (LVMH.PA) rose 5 percent to record highs after the Louis Vuitton owner posted better-than-expected sales growth in the first quarter, helped by thriving Chinese appetite for luxury goods. Its solid update boosted shares in other luxury companies such as Kering (PRTP.PA), up 3.7 percent.

    Higher-than-expected quarterly revenues lifted TGS Nopec (TGS.OL) up 11.4 percent to lead gainers on the STOXX.

    Among other country benchmarks, the FTSE was up 0.5 percent and the exporter-heavy DAX index surged 1.3 percent.

    Source: Read Full Article